The spraying water is not a damage model problem.
The code is set up to warn you of hull damage via visual cues instead of some idiotic hull integrity meter that would tell you the hull is at 87.145632356897658% strength.
If you see that, GO HOME. It's the game's way of saying GO HOME. The fact it's above the waterline has nothing to do with the way the sub is damaged. The HULL is weak in invisible ways (weakened metal, microscopic crack in the ull or welds... stuff just waiting to fail. Dive too deeply and you
will crush.
I actually think that a good look at the sub DMs would be useful, but I don't think that the "problem" that made you come to the conclusion is one of the things that needs fixing
tater