He did not. If you think about it, setups with AGMs and HO alts can drop voltage by quite a bit, so running those setups probably works alts hard.
Maybe not due to a splash, but it depends on what a "splash" was. The coincidence is pretty hard to ignore in his case. There's also a difference between "put it underwater then let it dry out and it still worked" and "put it underwater and tried to run it." Like a hair dryer. Maybe he dumped liquid in it and then cranked his car.
An alternator can function perfectly fine underwater, just like an electric motor. It's possible that his alt already had some kind of damage or a bad section of winding and the coolant/water caused it to short.
Matt