Look in the breech slot where you load pellets. There is a very tiny screw that holds the breech down. It is item #2 in the schematic. See if it is missing or snapped off. But your answer is it should not be lifted above the airtube. Take a picture an call crosman customer service.
First talk with Crosman about your options. (BTW does it have about 1000 psi in the tube and holding?)From the description it appears the transfer port (TP) is not seated. Surprising it was not seen during assembly. Either the TP is cocked or misaligned, or the barrel TP and breech TP are misaligned.
Wouldn't take it apart and reinstall. Idk how different it is from a disco but if it's anything like the disco it will only take a few minutes. Just be careful, that tiny screw can be easy to round.