That's how I understood this as well, Mary.
Apart from that, TGG will always be one of my favourite episodes of the show. I absolutely love the pool scene, there is so much going on there... between John and Sherlock, between Sherlock and Moriarty. And I think you can't give a villain a better entrance than the one they gave Moriarty right here. You saw him before as Jim from IT, and then you see this guy here once again and it's like WTF...?! Brilliant.