Laughing as discontented intern repairs hole? (10)

I believe the answer is:

institches

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'laughing' is the definition.
I don't know anything about this answer so I can't tell whether it can be defined by this definition.

'discontented intern repairs hole?' is the wordplay.
'discontented' suggests removing the centre (the word's contents are removed).
'repairs hole?' becomes 'stitches' (I can't justify this - if you can you should believe this answer much more).
'intern' with its centre removed is 'in'.
'in'+'stitches'='INSTITCHES'

'as' acts as a link.

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I've seen this clue in The Irish Times.

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