To achieve this distorted vhs effect, I began by selecting liquify and using the forward warp tool. You can change the brush size to make big and small distortions by dragging it left and right on the image. Then I distorted some cloud images and placed them into the picture with a screen blending mode to create the white smudges. I messed with the coloring by creating a new curves adjustment layer, changing it's blending mode to saturation and playing with the drop down menus (red, blue, and green) and adjusting the curves into an S shape. I filled the image with a striped pattern I created.
