Well, I’ll give you some consolation instead of the (mostly) irrational doomsday rhetoric that you’re getting from everyone else. “You’ll shoot your eye out, kid!”
You report NO noise. No anomalous performance.
I’d say that the sender was fouled by whatever he put in there. I cannot quite figure out the massive clouds of smoke. It may have been true that the engine was over filled, but this would generally result in oil being sucked up into the upper ring area under vacuum. It could get whipped up by the crank and that COULD result in low oil pressure, but you would MOST ASSUREDLY HEAR it if that were the case. If there was any coolant involved with the white smoke, you would have surely overheated by now. You haven’t. It’s not coolant and no reason to suspect it of being coolant.
Relax. You’re not going to be buying an engine…at least in my opinion based on what you’ve described. Have the sender changed and do a few slightly shortened oil changes.