Yes the fuel is drawn up through the nozzle in the carb, but not directly. When the air being drawn through the carb is at a sufficient velocity it creates a venturi effect and draws a sufficient amount of fuel/oil mix up to the throat of the carb via the main jet/nozzle. Air leaks anywhere in the system will take from the required velocity to draw fuel up into the throat. These 2 strokes are very simple by design, but not as forgiving when it comes to leaks. 9 out of 10 times when one of these 2 strokes will run on primer only it is due to a clogged carb nozzle, but since you say it's been cleared 100% then I would lean toward crankcase compression being the culprit. Recheck the seals, upper and lower, it's not uncommon for those to just completely pop out on you.