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The radiator cap is the highest point in your system. If the cap sees too much pressure, it will send the overflow into your "catch can" where it will not be recovered. If you had an "expansion tank" then the coolant would be recovered back into the system, the difference is a expansion tank sits ABOVE the rad cap. Your setup is fine, but you need to check your water level more frequently, as if you boil any out, it is gone. I have the same exact setup on all my cars, it has worked fine for decades, just not as idiot proof as the recovery tank setyups.
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In a fit of 16 year old genius, I looked down through the carb while cranking it to see if fuel was flowing, and it was. Flowing straight up in a vapor cloud, around my head, on fire.
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