What I would do is this:
Talk to the previous owner and find out why he was using race fuel in it. Maybe he knows something you don't.
People saying you need to do something about the squish is premature. You need to baseline the bike first and do a little research to determine if they are prone to preignition or detonation, and find out from the previous owner is he's made some modification that is making it this way. You made at least 2 mistakes. You didn't run the race fuel AND leaned out the jetting based on "feel". One will compound the other if you're borderline detonating. If you put it back together, make sure you have the correct piston, check the timing, double check for any air leaks (including seals), return the jetting to stock, and do a compression check to make sure you don't have some super high compression numbers. Once you know for sure what you have, then you can decide what to do with it.