major problem....
 

just bought my 2005 GLI 1 month and 7 days ago. 38500mi, aftermarket turbo and chip (my dumbass fault for not getting specs on either of these)

last night i turned my car on and as rmp's increased the car made a horridly LOUD whistle noise.... could not rev above 2 grand without it sounding like the motor would blow. let car idle and noticed smoke pouring from my exhaust to find out it was leaking oil (from exhaust) .... drove the car straight back to dealer (at 9:30pm) and checked the oil.... oil was gritty as if there was metal in my oil. so now the car is sitting at the body shop waiting to be looked at.

what should i be in fear of?

RE: major problem....
 

Small engine hopped up, and you bought it used, the dude
before you ran the crap out of it, you can bet on it.I would
be in fear of needing a new engine.