If you look through a glass of water , whatever is behind it gets flipped and distorted according to the shape of the glass. If there is something behind the glass on the left usually you will see it inside the glass upside down and on the right. (just some helpful tips)
As much as i respect your photoshop skills - i have to correct you on this one.
part of a glass works as a lense, to be precise, a rather cylindrical lense. As such they have a quite short focal length, which leads to the left-right switch, most of the times. But for being quite cylindrical, there is no top-bottom flip. For the glass you posted you'll get only some weird reflections/deformations at the bottom, where it turns to a ball lense again.
One further thing about the distortions. It depends on your distance to the glass, as the following pic shows:
this photographer was in such a distance, that the background can be pretty clearly seen as a smaller image. Distortions you only get on the sides of the glas due to so called spherical aberration.
don't worry... its all physics!