Sounds like a really, really bad smash-merge, crushing together at least three different Ottos.
Otto II of the Liudolfingers is the most ancient, dating (955 – 7 December 983). He's the one who was Holy Roman EMperor and nicknamed "the Red" (presumably because he was a redhead).
Otto von Habsburg (1057-1112) is later and belongs to a different family (the Habsburgs were Austrian, not strictly speaking German).
Otto the purported son of George II of England must be later still, somewhere between 1700-1750 approximately. He is plausible but un/under-documented, as George II, like most of the Hanoverian royal males, was a Tireless Tomcat.
