I know it's not technically an answer, but to make the result readable (code formatting required)
Works for me:
<?php
$input = '<div class="vmargin"><div><iframe src="/test.php?u=N0Bhlant98C6MRj0D44HwJMuf5TdA%2F24oG9hQ2qqX6IR2IruUxVrrhLR4EpHQDvGtuHH4%2BLgJMBG6L5%2BTs6t6FfgCbo%3D&b=5&f=frame" style="width:718px;height:438px;border:0;margin:0;padding:0;" __idm_frm__="100"></iframe></div><div><a href="" class="report_video" data-video-id="732253" title="Report Video">Video Broken?</a></div></div>';
echo( "!".preg_replace("@<div class=\"vmargin\".*?<\\/div>.*?<\\/div><\\/div>@s",'', $input) .'!' );
Output:
C:\test>php test.php
!!
Moving to ' quoted strings and removing the escaping makes it easier to read though
$input = '<div class="vmargin"><div><iframe src="/test.php?u=N0Bhlant98C6MRj0D44HwJMuf5TdA%2F24oG9hQ2qqX6IR2IruUxVrrhLR4EpHQDvGtuHH4%2BLgJMBG6L5%2BTs6t6FfgCbo%3D&b=5&f=frame" style="width:718px;height:438px;border:0;margin:0;padding:0;" __idm_frm__="100"></iframe></div><div><a href="" class="report_video" data-video-id="732253" title="Report Video">Video Broken?</a></div></div>';
echo( '!'.preg_replace('@<div class="vmargin".*?</div>.*?</div></div>@s','', $input) .'!' );
Same output