"It's a picture of me holding a picture of me.
"And no, that's not my crotch." he says.
Actor Ryan Reynolds responded with his tongue firmly in his cheek, commenting on the picture: "Vulgar."
The Deadpool actor is starring alongside Waititi in a new movie Free Guy directed by Shawn Levy, also starring Jodie Comer and Stranger Things star Joe Keery.
Olivia Wilde weighed in too. The Booksmart director wrote: "Obscene! My virgin eyes! How dare you."
Happy Endings actor Adam Pally says the photo was "grosser the second time".
Fans shared their thoughts on Instagram removing the photo.
"You broke the internet, Taika!" says one fan.
Another wrote: "It also happens to be the sexiest thing on the internet."
"So ridiculous, it's a great picture."
Others say they could see why the photo was removed.
"I think [it was taken down] because your left hand is in the wrong area."
Another fan commented: "I was thinking that was your crotch...but I'm surprised they took it down, I've seen worse that's been taken down."
Waititi also promoted the release of Jojo Rabbit on DVD and Blu-ray, joking that he has some "bootleg copies" if anyone wanted to meet him in a carpark to get them.