The 70-minute recording was played on the second day of the defamation trial between Ms Deeming and party leader John Pesutto.
She launched court action against Mr Pesutto over comments he made about her attending the March 2023 rally outside state parliament.
Moira Deeming asked John Pesutto if he was accusing her of being a Nazi. (Con Chronis/AAP PHOTOS)
She was suspended and later expelled from the party.
The meeting was attended by Ms Deeming, Mr Pesutto, leader of the opposition in the upper house Georgie Crozier and deputy Liberal leader David Southwick.
Then-deputy leader of the upper house Matt Bach and Mr Pesutto's then-chief of staff Rodrigo Pintos-Lopez were also in attendance.
The audio, played before Justice David O'Callaghan in the Federal Court on Tuesday, featured Ms Deeming being hauled over the coals for her involvement in the Let Women Speak rally as well as images of her having champagne afterwards with organisers, including anti-trans rights activist Kellie-Jay Minshull.
Ms Deeming is heard telling the leadership said she had no idea the Nazis were even at the rally until police arrested them.
"Are you accusing me of actual Nazi links?" Ms Deeming asked Mr Pesutto.
"Very obviously, I am not a Nazi, and I don't support Nazis."
Her links to rally organiser Angela Jones, who tweeted "Nazis and women want to get rid of pedo filth, why don't you?" was also raised as problematic to the Liberal Party's ability to win the next state election.
Mr Pesutto said he was "getting clobbered" over Ms Deeming's involvement with the rally and in turn there would be a public perception that the Liberals hated the LGBTIQ+ community.
During the meeting, Mr Pesutto told Ms Deeming he had come to the meeting thinking there would be two outcomes.
"Either you resign from the parliamentary party," he said, or he would look at "a process under the parliamentary rules".
Surprised by that declaration, Ms Deeming said: "Before I came in here, I didn't think that was even anywhere near a reasonable case to make that argument."
Sue Chrysanthou said Moira Deeming was bullied and subjected to a shocking attack. (Con Chronis/AAP PHOTOS)
At times the meeting became heated, with people talking over each other.
Ms Deeming's barrister Sue Chrysanthou SC told the court that her client was ambushed and subjected to a "shocking" and prolonged attack during meeting.
"It's a form of what young people call gaslighting," she said.
"They bullied her."
She said Ms Deeming had already made concessions to denounce Nazism, among other things, but Mr Pesutto never intended to give her the opportunity.
Ms Deeming agreed to do everything asked of her, except disown her friends in totality, Ms Chrysanthou said.
At the end of the long meeting, Mr Pesutto flagged Ms Deeming's expulsion and suggested she could resign to save the party time and energy.
"The damage is done - I am sorry it had to come to this," he told her as the meeting came to a close.
High-profile Liberals are set to give evidence over the three-week trial including federal Senator Sarah Henderson, Mr Southwick and former MP Matt Bach who is flying in from his new home in the United Kingdom.
Mr Pesutto has denied wrongdoing and his barrister Matt Collins KC is yet to address the court at length over the case.
Ms Deeming has sat in parliament as an independent MP since she was expelled from the Liberal party room in May 2023.
Mr Pesutto previously reached settlements with Kellie-Jay Keen and Angela Jones, issuing both women a public apology.
Mediation between him and Ms Deeming broke down after the former Liberal MP demanded to return to the party room without conditions.
The trial continues.
