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Gasoline vapour will disperse into air faster than liquid, but that is not usually a big advantage, and might have defeated a CVCC lean-burn arrangement. "Running on fumes" is just a humorous exaggeration of using up the last of a tank.
Smokey Yunick tried hard to build adiabatic engines, but the materials and lubricants both broke down quickly. He had the best in the world, much better than those previously available. We still need cooling systems in addition to the exhaust to keep an engine healthy and prevent pre-ignition.
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