Aside from making the engine run poorly, what you did should not have damaged anything. In being one tower off, you changed the engine timing. Timing can change the amount of heat in a cylinder.
If there was a problem before you did that, such as a failing head gasket, you may have pushed it into complete failure. What you are seeing may not be oil but condensation in the exhaust mixed with carbon residue from the inside of the pipe.
You didn't mention why you replaced the cap, or, if the engine now has any problems while it's running. if it's missing, first thing I'd do is remove the plugs and see if any have wet or burned on oil residue. If you find that, take a compression test and go from there..
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