So this seems to be the up and coming thing among the under-five crowd.
Really.This is the Germish version (German lyrics, with English thrown in in the middle) of the "Kuschel Song". Of course, there is also the "Official" English-only version as well, more popularly known as the "Snuggle Song". You can find it at the iTunes store as a featured selection under Pop Music Videos.
I just wanted to give you the opportunity to be the first on your block to get on the "Kill the Schnuffel Bunny" wagon. Or, at least, the "Kill the People Responsible For This" wagon.
On YouTube, if you search "schnuffel," you can find the DJ M-Extreme remix, a "JumpStyle" version, the MC Fishbone2K version, a Techno version and, of course, several karaoke versions.
Be very afraid.