The photon-ion merged-beams technique was used at a synchrotron light source for measuring absolute cross sections of double and triple photodetachment of O$^{-}$ ions. The experimental photon energy range of 524-543 eV comprised the threshold for K-shell ionization. Using resolving powers of up to 13,000, the position, strength and width of the below-threshold 1s 2s2 2p6 2S resonance as well as the positions of the 1s 2s2 2p5 3P and 1s 2s2 2p5 1P thresholds for K-shell ionization were determined with high precision. In addition, systematically enlarged multi-configuration Dirac-Fock calculations have been performed for the resonant detachment cross sections. Results from these ab-initio computations agree very well with the measurements for the widths and branching fractions for double and triple detachment, if double shake-up (and -down) of the valence electrons and the rearrangement of the electron density is taken into account. For the absolute cross sections, however, a previously found discrepancy between measurements and theory is confirmed.