First of all; the amount of detail under water can be increased in the 'advanced-subdivison settings'. Set ray detail multiplier to a higher number than default 0.25. Usually 0.5 will do, but the higher you go the longer the render time.
Then for the faceted part you need to up the Ray detail region (to 360/optimal), or the padding - I think the latter is the best to try first, just slide it to the right.
It's not a bug, btw, but an intentional detail setting, as often underwater is less 'important' and calculation of underwater areas is heavy on the machine. So the default is a 'good average'.