I would be more inclined to go with your theory that something's used the phones location. The ip address ones are fairy generic. When I was in Warragul I would get adds suggesting there were a wholesale supply of bored housewives in nar nar goon north. Prolly a total of 20 houses there! Plus it was 40km down the road .. I very much doubt an IP scanner would drop a pin within a few km of your place let alone in the correct street.IP's usually just give somewhere in your ISP's network.
Try going here: https://www.whatismyip.com
It will likely just show you your city, not your street address.
At a totally blind guess it just sounds like some sort of weird hack via another website or app using your phone's location information not your IP address. I've never seen it before.
Edit: fwiw whatsmyip states iam in Sydney using fixed wireless on Gippsland/Latrobe valley!