Re: WTF happened? Is the dealer scamming me? This is sad to hear how dealerships can treat customers. Try to see if you can turn the crank by hand to verify that the engine is seized. If the dealership is lying to you, it is very likely that even if they drained the oil they would not have been able to damage the engine. They would not have been able to start and run the engine without oil unless they fixed the initial problem that left you stranded.
Bottom line is find another place to work on your car.
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