Place it right after the failed moment in a short edit, then follow it with Emotional Damage to underline the embarrassment, or start with Baby Laughing Meme and let this clip take over when the joke goes wrong.
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This clip is about ten seconds of loud, stuttering laughter that keeps breaking apart into a digital glitch, with each ha-ha-ha chopped, repeated and warped until it sounds unsteady and off-kilter. It feels manic and silly, like someone laughing too hard at a joke that has already gone wrong, and it lands best as a sudden, over-the-top reaction that makes an awkward moment feel even funnier.