It is, indeed. What we are seeing is merely a trick of the eye or an optical illusion.
In physics, this is referred to as total internal reflection. The complete reflection of a ray of light within a medium (say water or glass) from the surrounding surfaces back into the medium is defined as total internal reflection. If the angle of incidence is greater than a certain angle, referred to as critical angle, then total reflection occurs.
An everyday example
What we see is an example of total internal reflection, happening when a swimmer dives into the swimming pool. The picture, taken near the shallow end of the swimming pool, shows a broad bubble where the swimmer has just dived in, which would also mark the water surface. While the lower portion of her reflection distorted because of the dive, the rest of the water surface is calm and hence the remaining portion of her body and the tiled bottom of the pool can be seen in the reflection at the top of the picture.
Try to notice this is the next time you take a look at a fish tank standing beside it and bending to have your eyes below the water level.
Picture Credit : Google