There are a couple of options that will achieve a similar look:
1. Wave Effect
You were on the right track in your original post by suggesting the wave tool, however in taking a closer look at the font in question, you'll notice that there really isn't much continuity of the wave effect between letters (take the 'N' and 'S' for example) and there are repeated letters that are identical:
^ In this sample I've superimposed the first instance of each letter over the next instance.
This evidence leads me to believe that this is either A) an actual font or B) this effect was achieved on a letter by letter basis. So, if we use the Filter > Distort > Wave effect, it's just a matter of adjusting the settings a bit in the dialog box until you get the desired result:
^ Here are the settings I found to be pretty close for the letter A
Repeat this for each letter (adjusting unique letters and duplicating letters that repeat) until you get a result that is cohesive across the full body of text. As I said before, the original post was close, just narrow it down to applying the wave effect to the letter instead of the entire word to have more control of the final outcome.
2. Nervous Font
As alluded to in part one of this answer, the sample in the original post could very well be a font based on the evidence presented. I wasn't able to track down an exact match, but I did find a font called Nervous that comes close to the same effect:
Again, it's not an exact match, but if you're satisfied with a similar effect it's not a bad route to take if you want to save some time.