When we were little, there was a second verse, sung while sitting on the floor after "all fall down":

Down at the bottom of the deep blue sea
Catching fishies for my tea
By a one, by a two by a three

At the count of three everyone stood up and lifted the smaller children playing into the air.

Is this just a local thing (NE England), or did others have this ending too? Anyone know where it comes from/what it means?

Bagpuss