With the lift control still in the up position, and it drops down when clutch is in (or neutral), that means the hydraulic fluid is leaking, thus allowing the hyd cylinder to leak off & drop. You can remove the right side port (round cover with hyd dip stick in it) and look inside with a good light & often see where the fluid is leaking from. There are 9 potential leak points, some seen easily, some not. You possibly aggravated the problem if you added a low viscosity fluid instead of 90 weight.
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Today's Featured Article - Oliver 550 Clutch Overhaul Tips - by Greg Sheppard. I got my 1964 Oliver Model 550 (serial 141-139-519) second-hand and used it for several years before the clutch began to slip. After taking up the pedal linkage several times I saw it was going to take more than that. The engine had been leaking oil at the rear seal and I suspected
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