I’ve collected a number of different versions of this handclap rhyme from Pittsburgh, Penn.
I also have a version from Erie Pa, Cleveland, Ohio, and New York City. In those cities, it is usually called “Tweeleelee”. That title & some of the words to this rhyme comes from Michael Jackson’s recording “Rockin Robin”. Here’s one “clean” version of Tweeleelee:

Tweleelee Tweleelee
Tweleelee
Tweleelee Tweleelee
Popsicle, Popsicle,
Your butt stinks!

He rocks in the treetops
all day long
a rockin and a boppin
and ah singin his song.
All the little birds on
Jay bird street
like to hear the robin
go