The party's no 2 in command faced calls to quit from fuming supporters after he said Labour could "disappear into a vortex of shame and embarrassment" if it did not tackle anti-Jew hate better.
Thousands took to Twitter to demand he throw in the towel after Mr Watson demanded the party adopt the international definition of anti-Semitism in full, and drop two investigations into Labour MPs who have opposed the party's stance.
In a stark message, Watson said Labour had to take a "long, hard look at ourselves" and demanded immediate action to end tensions.
But he said last night he was flabbergasted that people were calling on him to quit because he stood up for people fighting racism.
The 51-year-old tweeted: "It sometimes feels like people have been calling for me to stand down from day one but I never, ever thought I’d be facing demands to #resignwatson for standing up for people who are facing prejudice and hate."
Mr Corbyn remained silent on the furious row last night.
But Labour MPs and other senior figures came out to support him online.
Former foreign secretary David Miliband said: "Thank you @Tom_watson for recognizing the gravity of Labour’s situation. Power reveals. In this case it has revealed myopia and sectarianism at the top, betraying Labour’s history and failing the needs of the country."
And MP Wes Streeting tweeted: "Imagine demanding the resignation of our Deputy Leader because he’s called for meaningful action against racism. The absolute state of the #resignWatson cesspit and those who swim in it."
Ex-MP Michael Dugher called the people who were involved in the Twitter campaign "sad morons" and people who were "tragic, loner, keyboard warriors".
Yesterday Jewish leaders blasted Jeremy Corbyn's apology over anti-Semitism, saying it was too little, too late.
In a three-minute video message yesterday the Labour boss finally said sorry for the storm, and admitted it was up to him to sort it out.
But the under-fire leader didn't say anything about whether his party would finally adopt the full definition of anti-Semitism in full – which has blown up the whole row.
The Jewish Board of Deputies and Jewish Leadership council joined forces to blast his apology.
Last night Jewish MP Luciana Berger told the BBC’s Westminster Hour last night that Corbyn’s weekend efforts were not enough.
She said: “What is the leadership of the Labour Party under Jeremy Corbyn actually going to do? If you listen very closely to the words in the video and read the piece that was released on Friday evening, there isn’t anything different.”
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