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You have a short in your stop circuit or bent/out of place component. To check this unhook the small wire on the coil and tuck it out of the way. Put your recoil back on and try to start it. If it starts you need to follow the wire and look for any exposed wire. No exposed wire then you need to follow the mechanical portion of the on/off switch, something is not aligned right or a spring is worn out.
Next check your flywheel to coil air gap. Place a cover of a notebook or a piece of cardboard from a cigarette pack between the flywheel and the coil. This will get you the proper air gap. Then tighten down the coil. If that's not it, you have a bad flywheel. It's very rare but does happen.
Note: while you have the flywheel exposed, clean it up with light grit sandpaper (180 grit or finer) or steel wool. Rust can interfere with the electrical field.
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