Running on engine oil that's getting into the intake manifold somewhere - Rocker bolt or a burnt, worn or sticky valve or valve stem seal. Check you inlet/egr isn't filled with oil. Also if there's a pool of oil in the air filter box its getting real bad!
Mine did the same, must of made over 8000rpm because it blew the Mondy diesel rev counter that I'd fitted off the scale!

Big cloud of smoke, lots of noise, no control over it revving faster and faster, very frightening! I cut it by blocking the air intake, but generally after burning the excess it would run right, then about 10 miles later rev to extinction again. Took the head off and it had a burnt knackered valve bleeding oil into the cylinders from above but mainly I suppose causing oil to be pressurized back through the inlet manifold which made things worse (A lot of oil by the way, not the usual amount).
Worse case scenario - Secondhand valve ground in, new valve stem seals and a head gasket circa £50 and you'll need a diesel valve spring compressor. Best case scenario rocker bolt?
Must admit I'd have thought the engine would be toast as isn't it designed to be 3500/4200rpm max? Never did get it fixed though as I fitted another head which I spent a day cleaning with petrol, gunk and a toothbrush with new valve stem seals...didn't check that the new used head wasn't warped though first and consequently it wouldn't seat, so after all that work I was so demoralised I gave up on it and just swapped engines in the end. I'II get round to it one day.

120k is low mileage! Have you changed oil for thinner grade recently?
My Mk5 was biodegradable and disintegrated with time.
Ford. Committed to the Environment
Finally entered the 21st Century and bought a MK7. Oh Dear.