My understanding is that you can lose compression in 4 directions.

1

- into the crank case via blown rings/piston skirt
2

- into the ports via cracked/damaged valves
3

- into the coolant system via the head gasket
4

- into the head via damaged combustion chamber

- I would say there are others, but it depends how anal you want the list to be.

As for the car still running, that depends how bad the compression loss is I guess.

What ever the cause, its not a good thing.
