So just an update almost 9 months after the incident.
It was indeed a runaway situation. The turbo blew and sent oil into the engine, which then caused the engine to blow. When the shop pulled the engine out there was a hole the size of a softball in the side of the block.
Interestingly, my insurance company covered the repair costs. Since the turbo flooded the engine with oil, it hydrolocked. And I had coverage for a hydrolocked engine. Typically it's a situation of running into water, but it didn't seem to matter since fluid is fluid.
I've picked the thing up 3 times now and each time had to bring it back right away before making it home.
First time it kept stalling on me trying to get on the highway. Ended up being 2 injectors in bank #1.
Second time there was an extremely strong diesel smell when I came to a stop and I noticed smoke coming from under the hood. Ended up being the fuel return line was cracked.
And finally picked it up today, and got a CEL for injector #2, which is one of the ones replaced.
Also noticed my passenger headlight is no longer sweeping on start and is pointed straight down and neither headlight is moving left/right. I figure they had them out when pulling out the engine and probably forgot to plug it back in.
At this point it's been so damn long I don't even remember what it's like to drive it