The oil seal seems to have let loose on the hotside and oil is leaking into the exhaust. I can blow into the oil inlet, cover the outlet, and hear air coming through the hot side.

My question.. Is it completely shot, or is there a possibility it will reseal after driving it a bit?

This isn't the typical burning some stuf off kind of smoke. I pulled the turbo off and had oil leaking out into the downpipe.

 

unless you have too much oil pressure at the turbo or a drainage issue the seal will not come back to life.