I'm no expert, but what about fuel, spark and carb? Are all of those ok? Did you check the carb to see it's condition and if it needed a cleaning? How old is the motor?
If the air is being pumped the wrong way, I would strongly suspect a valve issue on the intake side...Has lots of spark and it would get fuel but it blows back out of the carb instead of sucking it in. Not sure on age. It's a model 20M314.
Very strange. The funny thing is this is the second motor I have repaired for this guy that had a spark issue. The first was an old Honda GC with points ignition. plug had no spark, put my inline spark tester in and it would light up like Christmas. tried a new plug and same thing. Ended up replacing the points and condenser. then I had spark on the plug. So I bought a spark tester that you can actually set the gap on. it produced enough volt to light the bulb but not jump the gap. Another lesson learned.I had an engine like that, fixed everything and it would not start, lots of spark and just popped and backfired a lot. I replaced the spark plug and it fired right up. Just had another machine that would not rpm off idle and replaced the plug and fixed it. $3 for me s worth a try.