Current, not voltage is what limits most components in an electric power plant. Power is volts times amps. It's always better to run a higher voltage for more power. Motors can be run for a while at well above their rated current. High current causes heating in the motor's wires, breaking down the insulation. Eventually this will cause a short. I don't know how your motor was rated, but it was probably with air cooling. Water cooling postpones this overheating to higher current levels.
As an example, the UL-1 motors are routinely operated at more than their rated current while water cooled. There's a point where their life is shortened, though. The stock UL-1 ESC will also fail at higher currents, but NAMBA allows a higher capacity ESC making the motor the weak link. We're racing so all components can be pushed beyond their ratings if a short life is acceptable.
Lohring Miller