What is this in context of? Is the Laughing Man commonly used in (maybe Japanese) hacks?
replyAll I know of Laughing Man in relation to exploits is from a small niche MMORPG called Toontown Online ( https://youtu.be/sGED1WcJhOM ).
One of the Ghost In The Shell animated series featured that face you saw in the video you linked.
replyIt was used in a fairly popular anime Ghost in the Shell: Stand Alone Complex.
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