Desacatao' is a Caribbean slang pronunciation of desacatado, meaning “out of control,” “wild,” or “unruly.”
In the song, it describes the Latino partygoers having such a good time that they are completely letting loose. The dropped final -d is a memorable feature of informal Caribbean Spanish, especially in Cuban and Puerto Rican speech.
"Somos Latinos" (We Are Latinos) is a party anthem built for one job: getting every Latino in the room dancing. Play-N-Skillz team up with the Cuban group Gente de Zona, and the hook is a simple dance instruction you will have memorised after one listen: "Un pasito pa' aquí, un pasito pa' allá" (A little step this way, a little step that way). "Pa'" is just a squashed "para", the way people actually say it.
The verses are pure pride and bragging. "Soy Latino de sangre" (I'm Latino by blood), "Vengo de un barrio humilde" (I come from a humble neighbourhood), "Y el corazón sigue grande" (And the heart is still big). Then the roll call: Boricua (Puerto Rican), Cubano, Dominicano, Colombiano, all the way to "Honduras, Chile, Nicaragua y Perú". The Cuban slang is the fun part. "Asere" means bro, and "¿Qué bola?" is Cuban for "what's up?", so the last line, "Asere, ¿qué bola?" (Bro, what's up?), is a very Havana sign-off. The middle verse gets a lot cruder and more suggestive, so it is not one to sing with your grandmother, but the song's message is simple: nobody, not even the neighbours, is complaining about this party.