The story
From out- + laugh. Compare Saterland Frisian uutlachje, West Frisian útlaitsje, Dutch uitlachen (“to ridicule”), German Low German utlachen, German auslachen (“to laugh at”), Danish udle.
Etymology from Wiktionary, CC BY-SA 4.0.
outlaugh
Today it means: To ridicule or laugh someone out of a purpose, principle, etc.; laugh down; discourage or put out of countenance by laughing. Full definition →