Water can magnify things because it can bend light- the same way as lenses in reading glasses or magnifying glasses.
When light from an object travels from air through a different material- like water or glass- there are lots of cool effects, like rainbows and fibre optic cables (which are used to send fast internet signals to your house!).
Try putting a spoon in a glass of water- the spoon will look like it is bent.
The fancy way to say this is that the light from the spoon is refracted when it enters the water đŸ™‚
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