50 cc = 3 cubic inches. 20 hp / 3 inches = 6.666666 hp/cu.in. which is WAY beyond any carbed hot rod achievement to date.
I don't know what a "carbed hot hod achievement" is, but google isn't returning anything usefull.
20hp out of a 50cc 2 stroke isn't unrealistic. even 20hp out of a 50cc 4 stroke is possible, just, much harder to pull off. 20hp-25hp-ish is the average range for race grade 50cc 2 stroke bikes. This isn't some unheard of mathematically impossible thing either. It's fairly common for anything designed for it. That's without using exotic tech too, and without a turbo.
If you want to use a turbo- put 15 pounds of boost onto a yamaha YZ125, and with no other modifications other then tuning the fuel intake to keep up with it- it will hit 50hp+.
"If it can why haven't I heard of larger engines doing that" because they're larger. The longer the stroke and wider the piston, the harder it's going to be to both hit the RPM needed to make that large of a displacement to power ratio, and the harder it will be to make the engine efficient at that RPM. F1 engines pull close to around 300hp to a liter of displacement, and a large part of the reason the only do that much, is because they're limited by the rules in ways that wont let them be built to output more.
**EDIT**
I'm not aiming to do it at 50. I'm aiming to do it at around 75cc-ish. Which you can buy off the shelf bolt on parts for. Either that, or swap it to a Zuma Minarelli horizontal (same mount), put a 100cc bore in it, and turbo that. As the engine case for them has a spot for a circle clip next to the crankshaft oil seal to reinforce them- meaning you can throw boost at it without blowing out said seals. I'd do it at 70ccon the current motor, but, a VZ21 needs more displacement then that at sub 10k RPM to make boost. They'll work off 50, but, you need to be hitting over 15,000 RPM to do that, and, that isn't easy to do.
but, yeah, back on point. 20hp outa 50cc is very possible.