[iPhone God App] It was found using the Photastic Video Warper actually

Photastic is an image and video warping and destruction app.
Supports warping still images from the photo library and the camera or warping video in Real-Time from the camera.

3 Different distortion modes:
◆Shatter your photos into thousands of pieces and watch them respond to gravity and reform.
◆Liquify your image, turning it into a swirly puddle of goo.
◆Grid Distort - Push and pull your image and then watch it snap back. Supports 6 multiple sized brushes:
◆ inflate
◆ deflate
◆ spin
◆ swirl
◆ pulse
◆ drag.

◆Support for VGA out, distortion particles, three different healing modes.
◆Kaleidoscoping the world in real-time

Watch a demo of Photastic HD http://www.youtube.com/watch?v=VgwSbDkFUgk
Created by Gedalia Pasternak, creator of the critically acclaimed iBeams special effects app. A Computer Graphics Engineer whose work has been seen in television commercials, video games, and the occasional military training system. As well as in the hands of bored teenagers at art museums.

Recommended for fans of Facemelter and fluid FX.