Has the bike had a 500 mile service? Has oil been added at any time since then to top up the tank?
Unless there is a lot oil of in the sump when the bike starts up I don't see how the level in the tank can increase.
If there is that much oil in the sump it suggests it is passing from the tank to the engine while the bike is standing idle. It does not seem like a normal amount.
Why should the oil light come on after running?
Sounds like either a dodgy wiring connection (doubt it is) or that you have no oil pressure.
I would be suspecting the oil pump / filter system is faulty.
If it's still under warranty I would get it checked before running the engine again otherwise drain the engine and oil tank, see how much oil is there and how it compares with the amount it should have,
Re appraise the situation before running the engine as otherwise there may not be much of the engine left!
