Maybe the bully laughs because he thinks it makes him look tough and in control.
The bully, Scut Farkus, picks on other kids.
In the 'Christmas story' in question, the bully might be excluding other children from Christmas activities. For instance, if there is a Christmas play or a group caroling, the bully could prevent some kids from participating. They could spread rumors about the other children, saying things like they don't deserve nice Christmas presents. This would create a sad and tense atmosphere during the otherwise joyous Christmas time.
The name 'Scut Farkus' in 'A Christmas Story' was likely chosen to be a bit outlandish and memorable. It gives the character an immediate sense of being a bit of an oddball and a troublemaker. The filmmakers probably wanted a name that would stick in the audience's minds, and 'Scut Farkus' definitely does that. It's not a common name, so it helps to create a distinct identity for this bully character.
The phrase 'bully off' in 'bully off of a christmas story' could imply a sort of rough start or a pushy beginning in the events of the Christmas story. It might be related to how characters interact with each other at the start of a Christmas - related activity. For instance, if there's a Christmas pageant and the kids are all excited to get on stage, they might 'bully off' to get the best positions or to be the first to start their parts. It's like a more energetic and perhaps a bit unruly way of commencing something within the Christmas narrative.
The bully might steal presents. Just like in some stories where there is a greedy character who doesn't want others to have a good Christmas and so takes away the gifts meant for the poor or the children.
If we take Scrooge as an example, he withholds kindness. He refuses to give to charity, doesn't allow Bob Cratchit to have a proper Christmas break, and generally spreads gloom during the festive season.
If we take Scrooge as an example, he withholds warmth and kindness. He refuses to give Bob Cratchit a proper wage and is stingy about Christmas celebrations.
Scut Farkus, the bully in 'A Christmas Story', often harasses the other children. He uses his intimidating presence to steal things from them, like their hats or small toys. He also likes to physically push them around and verbally taunt them, making the schoolyard and neighborhood a less pleasant place for the kids he targets.
Maybe Fortunato laughs out of shock or a sense of irony. It might also be a sign of his inability to fully comprehend the situation he's in.
Maybe he's just relieved and happy that everything turned out okay in the end.