One time I was cutting a limb off a tree that hung out over my neighbor's garden, that my 20" blade barely reached through.
It was a .....Water Oak, seriously that was it's species, Water Oak.
About 4 inches into the limb, water starting pouring out of the limb. There was a hollow portion to the limb, and after a bit it stopped.
In general a tree uses evaporation as a means to draw water up from the ground. The upper branches/leaves evaporate water as they heat up during the day. That evaporation causes a suction to start, like a vacuum to draw water up from below, and on and on the process works till it draws water from the ground.
So it appears that the water recondensed into water in the hollows of the tree during that process.
2 cents.