As I said I'd tried the Liquify filter and got the good result. As a matter of fact, much better then the one in the OP image.
The key point is using the masks extensively. You have to make all the significant masks beforehand and in the progress of using the
Liquify filter.
And using the right tools and in right context
It really pays to experiment and become an
expert using Liquify. It takes time but it pays a lot.
As I said use the Forward Warp tool most of the time. Don't get wedded to Pucker or Bloat tools, most of the time they won't give you the effect you really want.
First step is to use Transform Warp tool to "tuck" the text in behind the figure. Select the figure, invert the selection and Transform Warp the text so that it looks as if it goes behind the figure and then continues over the figure. That adds the natural "gaps" in text, as it would look in real 3D figure, with some parts of text obscured behind the figure.
Then make a precise mask for every part that would require different tools in
Liquify filter.
The more masks you make the better.
Go to
Liquify filter and use Forward Warp to warp the text according to your taste.
Using
Liquify filter don't forget to play with Radius and other features. Try and probe.
And, once again, use masks(Alpha channels)! Don't even try to get the least complex effect without masks. You won't get anywhere!
To make the most of Liquify filter you just MUST use the masks!
It's not just a surplus feature - it's crucial in a way that makes use of of Liquify filter totally useless most of the time or, on the other hand, gives the Liquify filter the unprecedented
leverage no other tool can provide.
Just try to think of the mask first and then you'll make the most of Liquify filter.