When you write that the water is squirting out the vent hole, suggests that the tank does, and should, have a vent hold. But now, why is it instantly squirting out . . . two thoughts come to mind: 1) The tank is full regardless of what the level indicator shows; 2) the vent tube going into the tank is laying on the bottom, so as you pressurize the tank, the water goes directly into the tube.
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