I had the same problem with my Crapsman mower. AFAIC, here is your problem-
Underneath your carb bowl may be a small electric solenoid. It is the Anti-afterfire solenoid and if you feed it 12v, it opens and allows fuel up the main jet. With the power disconnected, it is supposed to slam shut and stop fuel flow. In your case, it is either stuck open or not seating properly, so fuel may pass at all times. In addition to this, your fuel inlet needle (controlled by the carb float) is also not seating porperly. SO- gravity pulls the fuel from the tank, into the bowl, and up into the engine's intake- with nothing to stop it until the tank is dry.
The quick fix? A fuel shutoff valve in between the tank and the carb. The proper fix? Don't worry about the anti-afterfire solenoid, but definitely fix the fuel inlet needle issue.
All that fuel dumping thru the intake did a couple of things- It partially hydrolocked the engine, making it nearly impossible to turn over. A cylinder full of air will compress. One full of fuel will not. It also dumped a TON of fuel past the rings and into the crankcase. IMMEDIATELY change the oil and filter, and hope that nothing was permanently damaged.
The Smoke was either a result of the ridiculous amount of current the starter was trying to pull in an attempt to turn over a hydrolocked engine, and/or- you have a grounding issue. Be sure there is a solid electrical ground between the engine and the frame.
Which engine do you have, anyway?