It tells the story of Batman's first encounter with the Joker in post-Crisis continuity. The plot is based on the Joker's original introduction in Batman #1 (1940). The story "Images" in Batman: Legends of the Dark Knight #50 (September 1993), is another, alternate take on the same story. The title is a reference to the movie The Man Who Laughs, whose main character, played by Conrad Veidt, was one of the original inspirations for The Joker.
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