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You have a mid-engine, not an engine in the rear
The flashing light means the coolant level was low. That's why it went away when you added coolant.
The red light "pointing to the rear of your car" is a speed sensor which is connected to the rear spoiler which goes up at 70 mph. It is supposed to come on when you start the car, and will go off when you move the car as it calibrates itself.
I'd have the white smoke checked out by someone who knows Boxsters. And, I would stop listening to your father.
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