I have only heard of this in one other case and it involved using a late model 302 ford filter on an ancient 302/289 ford engine. The rubber covered up the out put ports of the engine thus causing backpressure and blowing the seals.
In your case I think that either the screen pick up on the engine is pluged completely up and not pumping, I think that your light would have come on. OR you have a passive oil system and you have the wrong filter.
Just a thought, I hope that it is the latter instead of the former...
How long did you run it this way?
-good luck,
KC