This is a 2-stroke so there is some oil in the bottom end but not much. There isn't a sump or oil pump like on a 4-stroke. The oil doesn't get past the rings
If you are getting that much oil in the cases they you have a bad inner crank seal and your need to replace the crankshaft.
If the engine is flooding with oil and fuel then your carbs have bad needle and seats and/or diaphragm. You will need to rebuild the carbs with Genuine Mikuni parts, not aftermarket kits.