I don't know what happened to the OP's engine
But my internet guess is bad injectors caused piston damage allowing the oil to get pushed out of the engine by pressurizing the crankcase.Plus the bad injectors could be pumping diesel into the oil thinning it to make the condition worse.
90 Chev 3500 c/c 4x4,6.2na,400 auto,4:10 gears.DSG Timing gears,main girdle, isspro tach, pyro,boost,oil and trany temp.Dual Tstats, High volume peninsular pump,on shelf, Custom turbo and intercooler 85%complete. Change of plans for the dually, it's going to get a Cummins. Both trucks are Blue 90 4x4 crews