The line looks like the vent line from the valve cover. I suspect the pump seal is bad and it's pumping hydraulic oil into your engine, and pushing it out the breather on top of the valve cover.
I agree with Zeb's conclusion for being a vent tube... hard to connect oil puking from that with the OP saying it happened when lowering the FEL down from full up.
OP..."After I lifted the bucket to the top, the tractor started releasing all of the hydraulic fluid out of a hose on the engine it seems."
so there are two hydraulic pumps, front and back, mounted on left side of engine. Is that the same as the charge pump? And then there is a hydrostatic pump as well? Which of these am I inspecting for a blown pump seal?
The two pumps are; one for power steering, and one for implements (loader, SVCs, three point hitch) In drawing from JD parts, seals are circled. They come in seal kit, P/N LVA10948. Imp = implement pump, PS = power steering pump.
Check your engine oil level, pump(s) are leaking into engine, oil level will go up and hydraulic oil level will go down.