The runaway engine is caused from improper throttle linkage adjustment/installation,or a failed governor. This has nothing to do with the mixture adjustments.
With the engine off, have an assistant move the throttle lever through the motions while you watch the throttle shaft of the carb move. You should see the carb shaft move against the idle stop when the lever is set to idle, then see the carb shaft move to the wide open position when moved to the fast position.
The governor works by pushing the throttle shut as the RPM come up. The governor spring opens the throttle, the spinning governor weights overcome the spring and push it closed.
Once you get it going through the motions, you should be able to see it work as the throttle speed lever is moved from slow to fast. If it still won't work, I can give more detailed adjustment procedures but it gets lengthy.
Now, for the collapsed float, I have never seen that happen, but as others have said, it takes external pressure to collapse it.
That can be caused from applying air pressure to the carb bowl through the vent tube (most likely cause), or possibly a very powerful backfire with the choke closed, (plausible) or maybe the engine kicking back and running backward with the choke closed, (plausible but not likely).
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Today's Featured Article - Show Coverage: Godfrey, Illinois Country Days - by Cindy Ladage. Except for last fourth of July's Old Gold show in Springfield, Illinois, I don't remember when it was so hot. Nevertheless, the heat didn't keep vendors and visitors alike from enjoying the third annual Country Day's Event. Jane Elliott said the event was originally a one man show. "Barry Seiler, owner of Country Town Farm Supply store used to invite people up to the Johne Deere store. He would give hats and a free meal for everyone that brings a tractor." Elliott said while this
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