Well, we need to get a grip on what is right and wrong, and what is good for your motor or not... You should never try to run the motor with a loose plug, that is not a good idea. You should also not turn over the motor for excessive periods without it running cause it needs to be lubricated.
That said, as long as you didn't blow the spark plug out of the whole and rip out the threads from the head the loose plug didn't cause a problem, as long as you still have compression when you tightened up the spark plug the running around without the plug installed didn't cause the problem either. The 16:1 ratio fuel is a bit heavy on oil but that will not ruin a motor either. If when you install the plug tight you have compression then no harm no foul man...
Still you are back at step zero, a no start motor. You CAN get this thing running, you just need to work at it a bit more....
You really need to tell me what kind of motor you have, specially WHAT CARB, I haven't seen that info posted yet? The carbs can be quite different, so which one you have is important to know.
From your last post about your spark plug I get to thinking you have a no fuel situation, because after trying to start her up with no luck you would think the plug would be a bit wet with fuel? If your rag is coming up clean when you wipe the plug then maybe you have a clogged up carb??? I would check the needle valve and main jet to make sure they aren't clogged. Starting fluid is not generally recommended for use on a two stroke (cause it doesn't provide lubrication) but a tiny squirt in the spark plug hole before you install the plug, or a shot down the throat of the carb (with air filter off) should deliver enough fuel to get her to POP a few times if fuel delivery is your problem. If a shot of starting fluid makes her pop then look more closely at the carb and fuel delivery system. If you get no pop with a shot of starting fluid then I would look more closely at the ignition. You could have two bad plugs (the kit plugs are crap) you could also have a bad CDI, or a bad magneto (or magneto with bad solder joints). To check the spark you can pull the plug, put the plug wire back on it, then lean bottom of the plug against the block to ground it and turn over the motor a FEW times and look for spark on the plug. (keep the plug away from the spark plug hole to be sure it doesnt ignite fuel if any comes out)
On the compression, when you install the plug (tightened properly) the motor should offer resistance to turning over, much more than it does when the plug is out. If this is the case then your compression is probably OK. If the compression is weak then perhaps a head bolt(s) is loose, or you blew a head gasket? Again, have no idea if this is your problem not being able to feel the compression myself, you've gotta judge that on your own.
Again, post back more info on your motor and results from some of these tests and someone should be able to help you get her going.
By the way, when the motor died was there any event attached to it? A noise, backfire etc?