I think he was trying to mimic the strange way her head moves in the actual anime, as you can see in the gif HMC posted. xD And yes, her head should move more erratically. Right now, the way it shakes makes it almost look like her head would be rotating on a very small circle, if that makes sense at all. It doesn't? Oh well.
doesn't at all look like she's laughing. I didn't know until I read your description. Try an up and down motion instead and make the eyes more of a curve rather than a line. A smiling mouth wouldn't hurt either
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