Spoke to a guy who works on AMGs today. He actually builds 'racing' engines with the blown V8s.
Anyway, he said that if you get much more oil than a few drops so to speak, that rubber dampener will swell up and back out of the crank pulley. Since I had an oil leak all over the front of the motor a few months ago from an oil filter o-ring, that all makes sense.

Off to see about the oil light still. Not having an issue with ignition or anything. So he highly doubts it the crank sensor.