Probably pointing at the flywheel.
If it was mine, I would have bought a new blower. That one looks like it was made by Homelite (frickin' junk - personal opinion).
$27.00 for a piston kit - another $72.00 and you have a brand new one.
At the shop I work at (in CT) that would be considered a junker for the simple reason that it would cost you more in time than you would have to spend on a new unit. (and cost you a $35.00 bench charge to boot - or $0.00 if we scrap it/use it as a parts machine.)
We, the unwilling, led by the unknowing, are doing the impossible for the ungrateful.
We have been doing so much, for so long, with so little, that we are now qualified to do anything with nothing.