У вас json поломанный, там лишнее кавычки вокруг квадратных скобок, в результате внутри photo не набор данных, а строка.
$json = '{"photo": [ {"markers_restarted":true,"photo":"89f6559651:x","sizes":[["s",858136244,"195d27","LUU541je04g",75,28],["m",858136244,"195d28","5X0nTDYfROQ",130,48],["x",858136244,"195d29","8d1U8WuXDBo",604,225],["o",858136244,"195d2a","Yq9fT1Ueo3A",130,87],["p",858136244,"195d2b","3AiiPHulyak",200,133],["q",858136244,"195d2c","x-B5oe9Myhc",320,213],["r",858136244,"195d2d","RwVnagzyMgo",510,225]],"latitude":0,"longitude":0,"kid":"442decc8b415ad1496eee074ff555262","urls":["v858136244/195d27/LUU541je04g.jpg","v858136244/195d28/5X0nTDYfROQ.jpg","v858136244/195d29/8d1U8WuXDBo.jpg","v858136244/195d2a/Yq9fT1Ueo3A.jpg","v858136244/195d2b/3AiiPHulyak.jpg","v858136244/195d2c/x-B5oe9Myhc.jpg","v858136244/195d2d/RwVnagzyMgo.jpg"]}]}';
$json_decoded = json_decode($json, TRUE);
print_r($json_decoded['photo'][0]['sizes']);