I read somewhere on here that it also makes you vomit.
No, it's not that bad. But it does give you genuine vertigo - I was surprised when I did it that it wasn't just a little vertigo but closer to roller coaster vertigo. Apparently shocking your inner ear really does stuff!
A recent paper in Cortex describes how caloric vestibular stimulation (CVS), i.e., rinsing of the ear canal with cold water, reduces unrealistic optimism. Here are some bits from the paper:
(CI stands for caloric irrigation which is how CVS was performed.)
It is not clear how close the participants came to being realistic in their estimates after CVS, but they definitely became more pessimistic, which is the right direction to go in the context of numerous biases such as the planning fallacy.
The paper:
Vestibular stimulation attenuates unrealistic optimism