I came across your article by accident and read it carefully, I believe the 5 year old is acting out a learned behavior, you should approach your ex and confront him as what he might think is happening, don't accuse him since he probably does not know what is going on. I understand is normal for a small child to "touch"there and to explore but this situation is way beyond normal. I'm not sure why you continue to allow your child to visit that house, I would have stopped it immediately and have spoken out your concern with all adults involved to try to find out what's going on. Perhaps the 5 year old is been molested by someone outside the immediate family or a bigger child.
This is not normal and the older child should be spoken to in very strong terms to deal with it. Her parents and your ex need to be involved in the conversation as well.
The older child is sexual abusing your daughter and if you get no help or positive response from the parents and your ex I would definately approach child services to protect your daughter. It is your responsibility to protect your baby girl, this will affect her for the rest of her life.
well the 1st thought that came to my head is how these children do this r wher they r learning maybe 1 of them has been sexually abused (putting a crayon in the others vagina!)crazy stuff stranges thing iv heard in a long time i would u make the necessary arrangements to make this stop..if u can send me amessage with ur progress im very interested in this.