الإنسان وحده ضاحك، وكل ضاحك حيوان
Only the human laughs, and every laugher is an animal.
The invalid conclusion is الإنسان وحده حيوان
Only the human is an animal.
The restriction waḥdahu is attached to the attribution of laughter to humans. The other premise says that laughers belong to the wider class of animals. This does not restrict the entire class of animals to human beings; many non-human animals exist.
One may infer that these laughers are animals, not that everything animal is human.