In a large bowl, mix together the cake mix, eggs, water, and vegetable oil according to the package instructions until well combined.
Pour the batter into the prepared dish and bake for 25-30 minutes, or until a toothpick inserted in the center comes out clean.
Let the cake cool in the pan for 10-15 minutes.
Prepare the Cranberry Layer:
In a small saucepan, combine the cranberry sauce, water, and granulated sugar.
Heat over medium heat, stirring until the sugar dissolves and the mixture blends. Remove from heat and let cool slightly.
Poke the Cake:
Once the cake has cooled, use the handle of a wooden spoon or a straw to poke holes about 1 inch apart all over the surface.
Add the Cranberry Layer:
Pour the warm cranberry mixture evenly over the cake, ensuring it seeps into the holes. Let the cake cool completely, then refrigerate for at least 2 hours.
Prepare the Whipped Topping:
In a medium bowl, mix the whipped topping with vanilla extract until well combined.
Spread the topping evenly over the cooled cake.
Garnish:
Decorate with red and green sprinkles for a festive touch.