There is never an O-ring between the lower, larger, chimney section and the upper, thinner, chimney section on a Kayfun. It isn't needed. There is direct passages, holes/openings, between the tank and the chimney, coil, wick, area. IE the Juice channels.
Because all of these bottom coil atomizers work on a negative pressure system you have to drop the pressure in the chimney area to allow juice to flow in. That pressure in the chimney area is dropped when you draw on the drip tip causing a lower pressure in the chimney and a higher pressure in the tank. So the juice flows in through the channels or around the threads of the two chimney parts. Once you stop drawing on the drip tip the pressure in the chimney goes back up to whatever the air pressure is for the environment you are in. When that happens you will see air bubbles, or only one air bubble, go into the tank because now there is lower pressure in the tank. The air bubble going into the tank is equalizing the pressure between the 2.
Just like a straw in a glass of water. If you put a straw in a glass of water and put your finger over the top of it and then take it out of the glass water stays in the straw until you remove your finger. The water can't flow out because to do so something, air, has to replace the water as it flows out of the straw.