Many stories about Buddy Bolden, and about Funky Butt; it is possible that one or two might have some truth to them.

Several stories (One of the sites linked below) say that one of Bolden's sidemen (names change) heard someone singing:
Thought I heard Miss Suzie shout
Open the window and let the breeze blow out.
He took the phrase and made up "Funky Butt"

Many 'verses,' changed at the whim of the singer, perhaps only the first stayed constant. The form comparable to a chantey, or some work songs.

One that may be close to the original may be heard here (Don't have time to transcribe it now): Funky Butt Jazz Band

The one started by PoppaGator is close:
Mississippi John Hurt, recorded for Library of Congress:

I thought I heard somebody say
(Guitar answers) [I think a horn in Bolden's]
Funky Butt, Stinky Butt, take it away
'cause I don't like it nohow.

See that girl with the red dress on
(Guitar answers)
Funky butt, funky butt, sure as you're born,
well. I don't like it nohow.

You see that girl with the blue dress on,
(guitar answers)
She got stinky butt, funky butt, leave it alone
'Cause I don't like it nohow.
[etc., there is more but I don't have Hurt's recording.

Funky Butt

The dance seems to be a later innovation. The site www.streetswing.com also is unavailable today; it has the story.

Another verse- forgotten the source:
I thought I heard Judge Fogarty say
Give him thirty days, take him away.
Give him an old broom to sweep with, take him away.

More will be found with google. Does any recording exist with Bolden's version? He went insane before 1910 and spent many years in the asylum, where he died.