水の泡 is pretty much the same as a “bubble burst” situation. The last two sentences sounds formal.
せっかくの苦労が(むしろ)仇となった。should be:
Rather, all my efforts just spoiled him/her.
“Spoiled” here doesn’t mean “to go to zero” but “to go to sub-zero” (negative). For example, I was a dedicated Japanese language tutor for Tom. Tom improved his Japanese skills, and he misused his skills to orchestrate a scam in Japan.
せっかく here means “in spite of difficulties” or “I squeezed my precious time to dedicate myself to X”.