The construction, involving compound adjectives formed with level is in use typically by younger American English speakers in informal settings. I don't know about other Anglophone countries. Here's a similar example:
Side note, when I went to the property there was a guy there that works for the marshals as a contractor going to houses they own and prepping them for sale, he was telling me all the stories of what happened in that house and some of the crazy things he's seen in different places, sometimes you forget that some breaking bad level shit does happen in good normal neighborhoods.
Anyways, it probably started with video game players, since if you are a very good video game player you get to higher levels. This particular example also uses status in a way that may also be sourced from video game lingo. As you get good in a video game you get status upgrades. To understand the usage, imagine that you are playing a video game where you are committing petty crimes and you get status upgrades, like "henchman," etc. And then you get a rare level upgrade for the "henchman" status. That is how gamers think and talk.
Now I suppose I'll get in trouble for making insensitive remarks about gamers, as sensitive as gamers are.