Preheat oven to 350°F (175°C). Grease a 9x13 inch casserole dish with cooking spray.
Heat olive oil in a large skillet over medium-high heat. Add ground beef, onions, and green peppers. Cook, stirring often, for 7-9 minutes, until beef is no longer pink and veggies are softened.
Add tomatoes, mushrooms, black olives, and oregano. Cook, uncovered, for 10 minutes, stirring occasionally.
Add half of the cooked spaghetti to the bottom of the casserole dish. Top with half of the tomato/beef mixture. Sprinkle 1 cup of cheddar cheese on top. Repeat these layers a second time.
In a small bowl, mix together the cream of mushroom soup and water. Pour evenly over the casserole. Top with Parmesan cheese.
Bake for 30 minutes, or until the cheese is melted and bubbly. Serve hot.
Notes
Feel free to add other vegetables, such as bell peppers or zucchini, to the meat sauce. For a spicier casserole, add a pinch of red pepper flakes.