My sympathy on your awfull experience. As you have discovered, the "cheap" way can really cost you. I know... it has happened to me.
Your bottle probably contains a "pinhole" in the bottom somewhere. This happened to me and flooded my pantry. The result was the same. The bottle appeared "sucked flat".
Here is what I've found that really works over a long time. Nalgene bottles are the best for storing water. They come in a HEAVY guage poly or LEXAN and come in a variety of sizes and colors. If you don't have a gear shop close you can go online to REI. They are relatively inexpensive. One note of caution. If you store water long term (6 month - 1 year) make sure it is steam distilled and ozonated. Water grows bacteria if not sterile. Always boil it before use (if you can) after storage.
As for the caned food. A little rust on the outside won't harm a thing. However, check for swelling or seapage. If the can is swollen it may contain botulism (which can be deadly). If it is leaking .... well .... it's bad. Either way toss it. Ordinarilly though, canned is fine. Actually, a mixture of dried nuts, dried fruits and chocholate are ideal for survival food. Get them vacuum packed if possible. Pack a bag of peppermints (hard candy) as well in case of stomatch ailment.
One more thought, (and you probably already now do this) NEVER store batteries in a closed place or with water or flame. It's an expensive lesson when they go bad as you know. TEKRA makes a variety of LED lights with small batteries in them that last hundreds of hours. You can pick them up online with the NALGENE bottles.
My bottles and light cost me less than $50 American. I've had them for many years and they are still like new. Good investment.
I hope this helps. Sorry to give it to you late. Chin up!
Your fellow survivalist.
William E. Hearn
"The Sassafrasshaman"