You definitely have a float issue..fuel is running uncontrolled into the bowl. Since the needle isn't closing completely it overfills and flows out the bypass tube..
Before your remove again, gently tap on the float bowl with a screw driver handle to see it the float it sticking..if it stops running out your good.
If not remove your carb again and double check the float needle..check for dirt in the inlet tube and check the needle for damage.
Re-assemble then shake the carb in your hand to verify you can hear the float moving..if you can't hear the float rattling around open it again and figure out why..
You're close to the solution..I've been down this road also a few times.
Current toys..
1986 Honda 350X..trail bomb!
1985 Honda 250SX..my main mudder
1985 Honda 250ES..Back in Black Trike
Current non-trike toys:
1990 Honda TRX300FW
1995 Seadoo GTX
1998 Polaris Indy Lite 340(Nearly new looking)
1998 Polaris Touring 500
1998 Club Car (electric)