Ok Eric, you've convinced us that there's a real problem here!
Now, this is something that Bullet old-timers have seen before, and it's not terribly uncommon under certain circumstances.
Let me do some 'splainin'.
First, this is normally caused by heat.
The heat can be caused by a variety of things, or a combination of things.
I'm thinking that the "rattling" you were hearing actually was detonation or pre-ignition problems that manifested into an overheated piston.
I'm not sure exactly what order that the progression occurred, but it is likely that the compression rings got hot enough to stick, and caused blow-by of hot combustion gasses.
This overheated the next ring and the skirt, which cooked any oil that was on the skirt.
The piston got even hotter and expanded even more, thus tightening the wall clearance tighter.
The tight clearance, hot metal, and lack of lubrication from the oil burning off from blow-by seized the piston in the classic 4-point manner.
I've seen this a number of times, and you're lucky that you didn't also bust the con-rod, because that often happens when a seizure occurs.
So anyway, what you need to do is look all the remaining parts over carefully, and determine the extent of the damage. Hopefully it will be limited to the piston and the bore alone. Then you can just replace the piston and re-bore to suit.
You CAN go to a higher compression piston, as suggested above.
However, this is something that needs some care in doing, because you will need to re-adjust your timing to suit the higher compression ratio or you will seize that new piston too.
AND THIS IS IMPORTANT, the 8.5:1 forged piston has a VERY big expansion characteristic and it MUST be clearanced at .006". This means the measurement of the new bore diameter MUST be .006" larger than the measurement of the new piston skirt diameter. That's diameter measurement, from front to back on the skirt.
If you do not do this, it will seize, and I know of at least a dozen people who have seized these 8.5:1 forged pistons by trying to clearance them too small. The piston will rattle when cold, and when warming up, but when fully hot it will quiet down and run at proper clearance.
You have to know this before going into that piston. It's a nice piston and made very nicely, and has great rings on it. But it needs ROOM to expand.
And, it will REQUIRE a more retarded ignition advance by about 4 degrees less total advance, or around 30-32 degrees total advance, and no more than that. Perhaps a little less, which you can determine when fine tuning your particular engine with it.
Also, make sure you don't run that piston lean at any throttle position.
I like that piston, and I have 2 of them for my builds. But, you have to know what it behaves like, and large expansion is the hallmark of it. Not trying to scare you off of it, but to let you know what to do if/when you get it.
The normal replacement pistons that are of cast construction do not require as much clearance, and can be clearanced at around .0035" or even a bit less if you break then in careful.
But the stock pistons such as you just removed, have very poor quality ring sets, and there are no good replacement ring sets for them that I know of. There used to be good sets from Cords, but they discontinued them in the stock sizes for the Bullet. maybe if you go .020" oversize and get the Cords rings for that size from CMW, that would be a good option for standard piston replacement.
The stock piston isn't too bad, but not great. However, the stock rings really suck.