I found a post on cutting the red wire coming from stator and that fixed my no spark issue. Saved couple hundred on buying a new stator. Bike is back to normal. Apparently the red wire is known for shorting out and isn't used with the electric start model, they used the same stator on the earlier kick start model that the red wire is needed. In case anyone else has this problem, this worked for me

 

Glad you found it, the extra wire must be a Yamaha "thing" I must confess I don't work on Yams much as the local Yam agent has a good reputation for his repair work, unlike the Honda one, who was a rip-off merchant, so we "independent dealers" get a lot of Honda repairs.

"Dude, how did that bike run so long without a stator" On most post 2000 bikes made by the "big four" the ignition is DC, so the stator charges the battery and the battery provides the spark (like a car). So, if the stator doesn't charge, the bike runs until the battery goes flat. Because he swapped the battery for a fully charged spare one when the bike showed signs of the starter slowing, keeping going was no problem.