Advice from someone who has had/been around a lot of cats over the years, and has a little occasionally problematic one now:
Cats work best with reinforcement in the form of treats (Whiska's makes some good ones in a pouch, that are even good for cleaning teeths), and tone of voice. The water bottle thing is a temporary and stupid human response reaction to that behavior at best (and trust me, I keep a water bottle next to the bed for last resort stuff too), and will either just scare the animal (but they'll just be like "fuck you, I'm gonna do this until the time it takes you to find the bottle") or get used to it like it sounds in your case.
Lots of times cats like that just need to be tuckered out with play, but organized focused play. Fetch, or one of those feather-tail toys etc, really get her running around for a bit if you can. Give her things she can destroy, cardboard scratching posts, or my cat loves the half of the netflix envelope that you tear off, when he sees that in the mail he gets so excited for me to open it (and then he plays soccer around the house until he decides to destroy it). Top it off with some catnip for an extra punch on the really schizo nights, and you should at least be sure to get some sleep without her terrorizing you guys too much. You really have to think of it as a chore, that needs to be done pretty much every night, with the reward being peace and quiet.
Some cats are just wired wrong though, and once they develop that behavior it can be really, really hard to break them of it. Females especially. My Grandmother had like a grey siamese that got more and more evil as she got older, to the point that she would pretty much hiss and scratch at anyone who was not her. A home with more attention and or less cats with territorial issues might be something to think about though, worst case scenario.
Don't give up on her yet though!