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I suspect overfilling allowed the crank to foam the oil -- once the foaming started, it blew out the dipstick tube until the level was low enough for it to stop.
There is a slight possibility that you have enough blowby at full throttle to pop the dipstick up, but even then you won't get THAT much oil blown out -- the 220 D barely manages 100 miles to the quart, and although I have blowby out the dipstick, and it occasionally causes it to pop up a bit, it only coats the engine with oil residue.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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