You're getting fluid in the carb because you've got an intake valve open somewhere along the line. Nothing out of order with that.
If the fluid is draining down out of all the cylinders, that would suggest stuck but broken rings. It can drain through the gaps in the broken rings, but those rings are still bonded tightly enough to the cylinder walls to bind you up.
ATF works when it has a chance to soak. If it is draining out that quickly, you're not gonna make much progress by pouring more in.
You may have to bite the bullet and at least pull the head for a looksee or (more likely -- sorry!)pull the whole engine and break her loose and clean her up.
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Today's Featured Article - Listening to Your Tractor - by Curtis Von Fange. Years ago there was a TV show about a talking car. Unless you are from another planet, physically or otherwise, I don’t think our internal combustion buddies will talk and tell us their problems. But, on the other hand, there is a secret language that our mechanical companions readily do speak. It is an interesting form of communication that involves all the senses of the listener. In this series we are going to investigate and learn the basic rudimentary skills of understanding this lingo.
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