The childs laughter at the conflict is due to his identification of the paradox and the irony – not any malevolence or ignorance of its meaning (which is actually the consequences) as the adults like to say.

[Should I call this ‘everted’ or ‘inverted’? Well, since it’s the child that is being looked at who is looking at others and his awareness of the paradox within him is questionable (the post doesn’t say), I choose ‘everted’]