>>2034742A point of light will look like that if it's out of focus and the watery effect is from temperature differences in the air causing turbulence, no different from heat haze on a hot day.
Here's a video of me holding my hand infront of a telescope opening and the warmth from my hand is causing turbulence in the surrounding air. Looks just like water, right?
https://www.youtube.com/watch?v=3_MY8stguWA 