Laughtalk: A combination of laughing and talking. While laughing, a person will try to carry on a conversation. However, this attempt more that not fails, resulting in "laughtalk" or words unable to understand. "Laughtalking" usually results in more laughing due to the sheer humor of it.
"Haha that girl was laughing so hard..."
"Yeah, she was totally laughtalking...what a badass."