I believe that on the right frame spar there is a oil over flow line that hoovers above your chain. That is where the oil is coming from. I think it may be from oil pressure/overfilling/or it's normal.
no such thing as a self oiling chain on an atv. sounds like an oil leak. check the seal on the countershaft. if it's leaking that might explain why the nut came off. welcome to the world of cannondales!
the countershaft is the shaft that the sprocket is attached to. it goes through the case into the transmission. it has a seal on it to keep tranny oil in the case. if it is leaking it can puke oil out onto the chain, case, swing arm, anything else around it. look on the parts diagrams where you got the p/n's for the nut and washer. it has a good detailed view. if there's a bunch of grime around the sprocket, the seal is probably bad. it's fairly easy to replace and if you can read the p/n on it your local bearing store might have one. but if you're gonna get the nut and washer from a site sponser just grab the seal also if it's bad...
nah...the chain didnt snap at the case....the spr0cket was 0n the art where the b0lt is supp0sed t0 g0 and wasnt spinning with the carnk 0r whatever. the whhen i started it after i haeard clink and the spr0cket was dagling fr0m the crank. butthe chain wa c0nnected t0 it and didnt hit.