Question about rear shocks (2nd Gen w/Rough Country Lift)

[Kasbien]

Long story short, I bought a project 2nd Gen that has a 4" Rough Country lift kit and a terrible squeaking noise. I haven't driven it since I bought it (been pulling/cleaning the interior), but decided to locate the source of the squeak today. It's coming from the shocks in the rear, due to metal on metal contact. The nut on top is also bouncing up and down upon compression... I think the PO forgot to install some parts or something.

Here's a video:
https://www.dropbox.com/sc/7p5drdtls8m6wid/AACo_MKsUwPp_Gocw-HCR6dla