Do you have water in the oil? If not, then might be more likely an exhaust or head issue vs. block. Or just very weird block crack that is very high in the cylinder. There's a lot of water ingress obviously (presumably into #5), with that much water I would expect to find water in your oil if it was a cracked block or an issue with the piston or rings. No water in the oil would indicate that the piston is pumping water to the exhaust side but not letting it by to the oil side, which would lead me to suspecting the top end, heads and valves, etc. No point in theorizing anymore, though. Time to tear down and find out for sure. I would not be running it anymore until the cause it determined.