1. Open a New Document in Photoshop. Set the dimensions to 500x300 to give you a decent workable space to type in text.
2. Select the Type Tool and type something on the canvas. For this example, the words "Warped Text" were used.
3. Goto Filter > Liquify (select OK, when photoshop asks if you want to rasterize the layer).
4. When the Liquify screen appears, select a large brush size and begin pushing the text around to make it appear warped or crazy looking.
5. Double click the text layer to open the Blending Properties dialog box.
6. You are done! (Feel free to apply any other filters, blending properties, or style that you want to give it).
