I checked other threads on here but didn't find any issue like mine. When I check the fluid, I do it exactly as others have described the correct way to do it on this forum. When I checked it yesterday when it was hot, it was showing up as bone dry, though when I checked it cold it showed totally full, but I know this is typical.

Today I added some to where the level rose right up to the dot, but it still wasn't in the zone that said 'okay'. After that I added a couple more times but the level wasn't budging beyond that. However, what happened was both times some fluid got in the squiggly part of the dipstick, and above that there is another smear of fluid, neither of which had been there before. I don't understand this.

 

I'd venture a guess that the dipstick is being dragged a bit against the walls of the tube and smearing the reading a bit. Seeing as it's impossible for the fluid level not to rise while adding fluid (assuming no leaks) I think what you're seeing is just the reading being disturbed when you drag the dipstick out.