Hi dgysupafly
Sounds like you had a condensation problem. Looking at the photo I don’t see any obvious air-vents, and I’m assuming you had it shut tight because of the weather? What happens in that case is that the warm moist air inside the tent (coming from your breath) gets trapped, and condenses on the inside of the cold fly-sheet. The conditions you are describing sound perfect for this to have become a problem. I assume this is why the ‘garden hose test’ passed - the fly is waterproof, but the problem is with preventing condensation.
Double wall tents (a separate fly and inner) deal better with this problem than single wall/hybrid tents (only a fly, or places in which you can actually see and touch the fly from the inside). Also, good ventilation should solve this problem - so 1) ensuring the tent you buy has separate vents apart from just the door, 2) Making sure to pitch the tent so there is space between the ground and fly, allowing air circulation and 3) leaving the door as far open as you can without the rain getting in. In the right conditions, however, condensation will always occur, but it should’t be to the extent that you actually get that wet. I have a hybrid tent, and even with that the worst I’ve had is a slightly damp arm if I roll over and brush the exposed fly.
The tent is a cheapie, and so added to its seemingly poor ventilation I wouldn’t be surprised if there was some manufacturing defect that lead it to leak as well. Better luck on your next purchase!