“The lake-beings about him drew daggers and moved upon Kull. Then the king laughed and set his back against a column, gripping his sword hilt until the muscles stood out on his right arm in great ridges.
"This is a game I understand, ghosts," he laughed.”

Source: On the Edge

canular refers to hoaxes, humorous deceptions.
The Paris Review interview (1984)
Context: You know, the Cathars believed that the world was not created by God but by a demon who had stolen a few technological secrets from Him and made this world — which is why it doesn’t work. I don’t share this heresy. I’m too afraid! But I put it in a play called This Extraordinary Brothel, in which the protagonist doesn’t talk at all. There is a revolution, everybody kills everybody else, and he doesn’t understand. But at the very end, he speaks for the first time. He points his finger towards the sky and shakes it at God, saying, “You rogue! You little rogue!” and he bursts out laughing. He understands that the world is an enormous farce, a canular played by God against man, and that he has to play God’s game and laugh about it.

Source: The Power of Myth

"Entertainment or Education? (1936)
Context: The theater-goer in conventional dramatic theater says: Yes, I've felt that way, too. That's the way I am. That's life. That's the way it will always be. The suffering of this or that person grips me because there is no escape for him. That's great art — Everything is self-evident. I am made to cry with those who cry, and laugh with those who laugh. But the theater-goer in the epic theater says: I would never have thought that. You can't do that. That's very strange, practically unbelievable. That has to stop. The suffering of this or that person grips me because there is an escape for him. That's great art — nothing is self-evident. I am made to laugh about those who cry, and cry about those who laugh.

Take by his grace a new and alien charm. </p><p> But in the city, like a wounded thing
That limps to cover from the angry chase,
He steals down streets where sickly arc-lights sing,
And wanly mock his young and shameful face;
And tiny gongs with cruel fervor ring
In many a high and dreary sleeping place.</p>
"Alarm Clocks"
Trees and Other Poems (1914)

Christ, Old Student in a New School (1972)
Context: That so much time was wasted in this pain.
Ten thousand years ago he might have let off down
To not return again!
A dreadful laugh at last escapes his lips;
The laughter sets him free.
A Fool lives in the Universe! he cries.
The Fool is me!
And with one final shake of laughter
Breaks his bonds.
The nails fall skittering to marble floors.
And Christ, knelt at the rail, sees miracle
As Man steps down in amiable wisdom
To give himself what no one else can give:
His liberty.

When asked about Angus Young, lead guitarist of AC/DC. From Reims, December 1979.

"Rattle of Bones" (1929)