Start by typing your text.
Press Q and enable quick mask.
From filter menu apply distort>>glass.
Apply settings as shown.
Press Q and disable quick mask. Hide the text layer.
Create a new layer and fill the selection with red color.
From filter menu select liquify.
Select forward warp tool.
Drag the bottom portion of the text downwards to create the dripping effect of the blood.
Apply bevel&emboss layer style using following settings.
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