Hi Bob,
I had the exact same problem on my TS125 but it also seemed like I had no compression as well.
No matter how much I tried it would not fire up , I thought that I had holed the piston !
Any way, I cleaned the wet plug again and with the fuel tap
off and a little choke ( I know MZ call it the 'starter carb lever' ) I started pushing it in 1st gear . Like I said no compression.
Eventually after a lot , and I mean a lot of pushing it started with loads and loads of smoke , also it would not rev at first but after a few minutes and with the fuel tap now on it did start to rev up ok.
I'm not sure what happened but it seemed to have become very flooded and I presume the fuel had washed all the oil out of the bore hence the lack of compression. That's my idea anyway
Hope this may be of some help
Good luck
Richard
Devon