each character only had two fatalities in MK2 if i'm not mistaken, so maybe you forgot one other fatality as i thought that was a real one.

It's real,you have to hold LP for 25 seconds and when you kill your opponent release LP (at sweep distance) and watch the magic.

You gotta hold LP for about 30 in-game seconds, so you have to defeat your opponent while holding it and during "Finish Him/Her" release it from the sweep distance.

I thought it was common knowledge that Shang Tsung had three Fatalities in MKII. But yes, the Kintaro Morph is a true Fatality, along with his Soul Steal and Inner Ear.

Yup, Shang Tsung can turn into Kintaro for a Fatality and knock off his opponent's torso. I've always found it easier to hold LP for the entire round, just to make sure I had it right (I only did it for show, of course).
Just to let you know, Scorpion also has three Fatalities in MK2; his regular fire breath one (mid-screen, Up, Up+HP), his Toasty breath (any distance, Down, Down, Up, Up+HP), and his throat slice one (close, Hold HP, press Down, Front, Front, Front and release).