Clearly the whole thing was a massive misunderstanding, taken hideously out of context. Let's look at what Daley actually said...
"Let me tell you something little girl...”
Like any decent orator, he was informing his audience that he was about to impart some valuable information. Furthermore, she is more petite than he and is indeed female. Nothing to see here.
"...have some respect for your f****** elders...”
This is basically him advising her to not disturb her parents, aunts and uncles, older siblings etc. if she ever happens to walk in on them playing a game of hide the sausage. Sound advice.
"...or I'll nut you one...”
Obviously here, Daley was saying that if she did happen to disturb aforementioned relatives with a schoolgirlish scream of "urgh!", it would be deserving of an equally immature school pasttime i.e. a "pea(nut)", where the school wag basically squeezes the knot in your tie so tight that it resembles a peanut. I understand he was originally going to say "...or I'll give you a Chinese burn..." but, as a keen advocate of political correctness, is aware that assigning a specific nationality to a wrist-twisting technique that can be performed by annoying children from any country could be misconstrued as a generalisation.
"...because if you don’t, I’ll finish you.”
This was simply the end of a separate conversation they were having discussing strategies for the video game Mortal Kombat. Perfectly innocent.