michael.bartnetton Game Development Stack Exchange • Recommends
On “How to render 2D particles as fluid?”
Grant Kot has put some of his fluid simulation code up on Github with implementations in both javascript (canvas) and C++ with OpenFrameworks: https://github.com/kotsoft
He has a few demos up on his youtube account: link to this video
I have no idea how it works, but I know it runs fast and there's all sorts of variations to build with it. A good keyword to search for might be "multigrid particles".