Wood paneling - horizontal or vertical?

So I am finally tackling the messed up wall in my upstairs (see attached pictures - I used water based primer, instead of oil to create the bubbles). I do not want to spackle or re-paint (such a headache!)...so I've decided to do wood paneling. My question is - should I do vertically or horizontally? This is a small room with an even shorter ceiling (only 6.5 feet, if that). Any thoughts? Thanks so much!
wood paneling horizontal or vertical, wall decor
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