Is the statement of Ibn Abbas, may Allah be pleased with them both, "The minor [sin] is a smile and the major [sin] is laughter in a state of mocking a Muslim," to be taken literally, or was it said as a form of emphasizing severity?

The narration attributed to Ibn Abbas, in explaining the verse: "And they will say, 'Woe to us! What is this book that leaves neither a small [sin] nor a great one except that it has enumerated it?'" mentions that "small" refers to smiling and "great" refers to laughing. Commentators have interpreted this narration in two ways: First, that "small" and "great" refer to actions, not sins, so smiling is a small action and laughing is a great action. Second, that the narration refers to smiling and laughing as a form of mockery and ridicule of the believers, which is considered a major sin due to the harm it inflicts upon believers.