Hypothetically, more water retention would mean that the fluid being flushed is less concentrated, and if the flushing mechanism is triggered by a certain concentration level then it'll happen less frequently.
Hard to imagine that it would be worth more than a few percent though.
I would imagine it has more to do with its principal function in recycling ADP back to ATP (fuel for cells). People who are sleep deprived also have impaired glucose metabolism, meaning that the cellular "fuel pipeline" is impeded. Perhaps creatine is especially helpful under these conditions.