Mr 6969 (no relation to 7700),
I can indeed confirm that your alleged rumour has officially been confirmed from a trusted source.
I can't believe that any qualified flight instructor with CPL and Instructor rating (which you would have to only *assume* comes with some form of trust...) that you would sit there in 30+ degrees with an engine clearly in the red in CHT and OIL temp, then proceed to takeoff anyway??? It's not rocket science to know that once over red-line there may as well not be any oil in the engine at all in terms of lubrication and it's only a matter of a minute or two and things will go horribly wrong.
Let's hope that the instructor DID in fact get the SACK and won't ever put the life of another student at risk again!
Regards, Squawk7700.