As many suspected, the "Worst Twerk Fail EVER" video is a fake. Jimmy Kimmel, who had a hand in its making, confirmed it tonight on his show.
The video featured an inverted twerker named Caitlin Heller, who caught on fire after her roommate opened the door she was twerking against, causing her to spill over onto a table holding a lit candle. Kimmel showed a "full director's cut" of the video on Jimmy Kimmel Live, which featured him coming through the door after the roommate and extinguishing the fire. It turns out that the twerker's name isn't Caitlin Heller, but Daphne Avalon. She works as a Hollywood stuntwoman.
Kimmel explained that his team posted the video on YouTube without promoting it, instead choosing to "let the magic happen." And so it did — the video received over 9 million views and spawned a sort of supercut (assembled by the Live team) of news anchors marveling over what they thought was real. (The best clip within is of the women on The View, who all seemed convinced of the video's veracity.)
Kimmel said that he hoped this exercise would stop twerking forever, but if anything, it'll probably just inspire more trolling and/or people setting themselves on fire for the sake of YouTube views. That could be satisfying, too.