Hilarious situation (4)
I believe the answer is:
hoot
'hilarious situation' is the definition.
(I've seen this in another clue)
This is the entire clue.
(Other definitions for hoot that I've seen before include "Honk - laugh" , "Cry of owl" , "Owl's sound" , "noise made by 7 [WOOD-OWL]" , "what's voiced in parliament?" .)