This is why I've advocated so strongly that these watercraft need an electric automatic bilge pump in the hull with the auto wire hooked directly to the battery so it's in auto mode full time... you can take on water without knowing it otherwise, then it's too late. An electric automatic bilge pump prevents just this sorta thing from happening you will SEE the unit discharging water over the side and know you've got water coming into the hull immediately.
Did the engine hydrolock at any time? Your intake manifold can hold a cup or so of water inside it, you gotta pull it off the engine and drain it out. The only problem with using a cheapo oil is that you'll never get all of that out either, the best you can do is suck out about 4 out of the 5.6 quarts of oil the crankcase holds so you might as well bite the bullet do a proper oil AND filter change then do another proper oil AND filter change after maybe an hour or two of runtime, then again after another 2 or 3 hours more of runtime, till the oil you extract comes out mostly clear again. You messed up, hopefully it'll only cost a little if you're lucky if not... well that's how I bought my RXT for so incredibly cheap actually. ;-)
- Michael