Ok, I think the confusing part is static pressure and total pressure. I've read some different things and it doesn't seem real black and white.
If we look at Bernoulli's p + q = p0
And p0 is total pressure and doesn't change, p is static pressure and q is dynamic pressure.
So IGE: q is smaller and p is bigger
OGE: q gets bigger and p gets smaller but p0 remains the same for both.
So then what is the static source measuring? I assume it's measuring p, but if this is the case then OGE/IGE will show up in the altimeter. But if the static source is measuring p0 this makes no sense because it couldn't read as high as a pitot tube vertically placed in the rotorwash.
Do you see my confusion?