Right off the bat, I see a lot of issues with verb tenses.
The next moment is about as clear as the first.
It should be "was", or if you want to keep the narration style of "someone recounting the story in past tense with present tense commentary", you could say "I remember the next moment as clearly as the first". Fix these errors throughout.
…someone would ask "Why did you turn around?"
You need a comma after "ask". You make this mistake a few other times, so please correct all instances.
Before I assume it was the laughter. Whether or not I was faking it, that would make a bit of sense to fake, as I wouldn't want to be that person to imply a joke wasn't funny. But I mean, I was in the privacy of my own home during this second instance.
This is extremely confusing. Please fix clarification and consistency with what you wrote before.
I can't even imagine a cloud being anything besides a cloud.
What does this even mean/how does it fit? Is it intentionally confusing?
The dream I'd hadn't
Had, not hadn't.
I simply let myself spin around and fall, my back hitting the wall…
Hmm, I can't visualize this, unless you mention that the basement is small enough for this to happen.
The white fluff around it's head…
Its, not it's. Fix this error a few more times.
judgement
Well, something like this could fit on here, but it definitely needs more improvement. The story itself is a little confusing, and you should at least clear up all of the scenes.
So I wrote this spontaneously in an hour and a half…
I ask that you reread your entire story and see if it follows whatever you had planned. Also, why does the narrator never notice the end result until the end? It seems somewhat noticeable. Please reply with any thoughts that you have, or any clarification/questions that you would like me to know/respond to.