This can happen with ANY oil applied directly to scalp. It's very normal reaction. If you are only beginning oiling & massaging your scalp, you'll notice more hair shed than usual. This goes away after 2 or 3 applications, as your roots are getting stronger and used to the massaging action.
I think, it can happen if you apply it just to your length too, first, because oil can travel up the hair shaft a little and, second, because it just gives an appearance of shedding hair, while it's just the hair that's already shed that's coming out or also hairs nearby that get entangled and coming out with the shed hairs stuck to them.
Check your overall shedding rate. If it's the same as before, you can safely keep oiling. My hair sheds more during oilings, but doesn't appear to shed at other times. It's a bit like washing: you'll see more hairs coming out in the shower just because you are manipulating hair more and old shed hairs are being removed, but it doesn't necessarily mean that there's a problem.
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