Now the water heater is leaking?

The Clubhouse wrote:
I am back home but trying to get my water lines working. I installed 2 new 1/2” valves. When I connected the first and closed it after running city water for a short while the water started draining out of the other drain, assuming hot water. I turned off the city and let the water stop draining then installed the 2nd 1/2” valve. I turned the city water back on and rather quickly noticed water coming out from the water heater area. Upon closer inspection I could see a stream shooting out from the cooler type insulation. I shut off the city water and opened both valves to drain the water. Not sure what if anything I did wrong. Any thoughts on what happened?