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Originally Posted by not quite right
My youngest son has that exact same reaction. They call it improper response disorder, and it stems from anxiety. I hope that is helpful. Welcome.
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I was gonna say something similar to this! It alleviates the tension of the situation. The laughter is normally nervous laughter though. The weirdest time I've seen someone laugh is after they've been insulted. That was honestly the strangest (and most depressing) thing I've observed.