Pierce upwards with hole in squash bottle (8)

I believe the answer is:

jeroboam

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'bottle' is the definition.
(I know that jeroboam is a type of wine bottle)

I don't understand how the remainder of the clue works.

Can you help me to learn more?

(Other definitions for jeroboam that I've seen before include "a lot of bottle?" , "Four-times bottle size" , "Ancient king" , "Very large wine bottle named after old king of Israel" , "large sparkling container?" .)

I've seen this clue in The Guardian.

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