Three members of the elderly staff were temporarily interrupted when the appearance of an elderly patient worn by caregivers appeared.
The video shows a man naked, except for his underpants that are rolling around while the laughter is heard from the camera.
The clip recorded at Hillside Care Home in Huyton was sent by the Daily Mail to a woman from North Wales who saw her in the social media of a friend.
Since our colleagues in Daily Post made the recordings available to supervisors and the home-based company, three personnel, including a North Wales care worker, Sophie-Lynne Williams, were suspended until an investigation was initiated.
Since then, the Quality Assurance Commission has visited Hillside, at Hillside Avenue, Huyton.
Qualia Care, who manages the facility, describes the video as "disgusting" and said that recording and sharing is "totally unacceptable behavior".
It is understood that Knowsley officials visited the home on Friday and reported the incident to the Merseyside police.
A spokesman for the police said: "Today, on Friday, November 9, we received a report that video in Hillside Care in Huyton video and a video clip shared in social media.
"Inquiries on the incident are ongoing."
Miss Williams, a former member of the Armed Forces, who is at the age of 20, lives in Wavertree. She did not respond to the daily mail for comments.
It is not known whether the video was taken or shared, but it is understood that one of the three staff members is paused.
One warrior said: "I was totally tired and in tears when I saw Snapchat video of an old man who was humiliated and laughing.
"I can not even imagine how his family would feel if he knew that pure humiliation was passed on to his loved ones."
Qualia Care said she was disappointed that no one who worked in a home who was aware of the video tried to raise an alarm.
The statement said: "This is disgusting and completely unacceptable behavior and completely contrary to the reasonable expectations of any employer, especially in a caring environment.
"We are disappointed that this has not happened with our strong and confidential procedures for reporting irregularities that are well publicized in the home.
"As soon as we were aware, we immediately acted to resolve the matter, the number of employees was abandoned and we worked with external agencies to fully investigate this incident.
"The case was reported to the police."
A spokesman for the Commission for Quality of Care said: "On November 8, CQC received videos taken at Hillside Care Home in Huyton.
"CQC inspectors immediately responded to the home to conduct a comprehensive inspection to ensure that people were safe and well-supplied.
"Everyone who supplies, has the right to be treated with due respect and dignity, and CQC has a number of executive powers to protect people and have registered providers on account.
"Inspectors work closely with the Knowsley Council on the incident.
"The review report will be published in a timely manner."
Council Knowsley said that investigations are underway, he can not comment on further.