Leakdown test need input

[9 T GSX]

Yesterday did a leakdown test on a friends car yesterday and im not really sure what to make of it. After letting the car warm up to operating temperature put the engine at TDC, started test in cylinder #1 and at 10 psi of pressure i could hear air coming out of the dipstick tube,According to the manual that indicates bad rings etc.With this and wanting to make everything is closed like it should be I decided to turn the crank approximately 2 teeth off from TDC while still at 10 psi and the noise from the dipstick stopped,only thing about this is I had to hold the ratchet so there would be no noise as soon as i let it go the noise came back. The results/noise are the same for all 4 cylinders.

Would this mean that the rings are bad or is it possible that the timing is off a bit?
or maybe the valves got bent some how.

Reason for test is car is putting out white smoke which normally indicates a bad head gasket,just trying figure out what the problem is before we start taking things apart.
Another strange thing is we put water in it filled it up to the top of the housing before test ,while doing the test happen to notice the water had disappeared. Where did it go? we never started the car .

 

[Colt4G63 also]

There are only a couple places the water can go. Check the oil!

As for the leakdown results, make sure TDC is really TDC. If the harmonic balancer is shot, the mark won't be accurate. Put a plastic drinking straw or something blunt and harmless into the #1 spark plug hole, and find true TDC before you make any assumptions. Once you have true TDC you may as well check your valve timing. If valve timing is ok it's unlikely his valves are bent.