Follow up to Whoops now what

Ok, so I tried pressurizing each cylinder on top dead center and bottom of intake stroke. Apparently I wasn't always top dead center as the motor would spin until one of the valves would open and let the air out. Even when I was able to get it to not spin the engine it would blow out engine case breather. I pulled the cap and put my hand over it to confirm that. So apparently I can't pump the cylinders full of air and have them hold anything. Ran another compression test on each cylinder and am getting around 110 PSI on each cylinder.

Decided to pull the head. Gasket looked fine, but there was a ton of water in cylinder #1. Probably around 1/3 to 1/2 a cup of water. Plus there was evidence of moisture as the valves looked a little rusty. Figured I had a cracked head so took it to the shop. It all checked out good. So now I am down to a cracked liner or a crack near the valves. Is this a common place to have them crack? I filled the block with water again and haven't had any seepage into the sleeve, so either it takes pressure to open a crack in the sleeve or where ever else it might be.

Only other option I can think of is that the gasket didn't seal, but it sure looked good then I took it off.

When it doesn't hold pressure in any point of the revolution does that mean my rings are shot?

Any more ideas would be appreciated.

Thanks.

Don't know what tractor you have but I would think that it is probably block expansion with heat, rather than coolant pressure that allows the leakage.