Hi, and welcome to the forum!!
I'm sure the equipment experts will chime in here shortly, but my first suggestion would be to take the faceplate off the multiport and see if the inside is intact, or possibly cracked, which would let water through as if it were set to "waste", no matter where the setting.
Janet
Here's a link Pooldoc posted to the inside of the multiport with the gasket taken off. The plastic channels you see there are what I was referring to...http://www.poolforum.com/pf2/showthr...gasket-install
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