possible causes
There are lots of reasons for low compression resulting in higher than normal rpm when cranking. Holes in pistons from detonation, burned exhaust valves, worn piston rings, blown head gaskets, stuck open valves are some of them. As zogg suggested, I would perform a dry and wet compression check. Remember to do it with wide open throttle. I would also disable the ignition, remove the valve covers and crank the engine and observe what happens.