Overreacting?

Alright so I may or may not be overreacting but I need other opinions. So quick back story, I was with my family and kids at the zoo and there was this stage thing that the kids were climbing all over. My daughter who is 8 was on the stage dancing and I didn't see how she was dancing but my mom was behind me talking to my dad and made the comment "she's going to become a stripper dancing like that." Yep, she said that. Then the other day she said my son who is 3 is probably going to be into s&m stuff since he likes to "get spanked" please tell me I'm not overreacting over her saying this about my kids. And yes, I got on her about her saying that about my 3 year old!