Took the gun apart again, and the O-ring around the valve exhaust stem was visibly damaged, which corresponds clearly with the leak I experienced.
Some years ago, I was given a wreck of a Umarex 586. It contained the same valve as the CP88, so I had another of these O-rings.
Changed it, careful not to damage any seals, and the gun now seals well, indexes and shoots, so success getting it to work.
Now the net problem arises it shoots way too high!
The rear sight is windage adjustable, but theres no height adjustment.
Are there different front blades for these?