The method I used to beat laughining octopus, was basically a grenade launcher, in which I customized onto my M4. Whenever octopus pulled her p90 out I blasted her to the floor. Whenever she decided to ball up and try to roll me up. I BLASTED HER! It knocks her to the floor. Whenever she jumped and attached herself in the rafters, u guessed it I BLASTED HER! She fell to the ground.

This method worked very well for me. I didn't waste any rations, didn't eat any of my noodles. Keep in mind I had enough Drebin points to add the grenade launcher to my M4, and also bought a lot of grenades.