Lines like "Operation Inchworm" and "I find it very odd!" as well as the nice grandma nightmare definitely place this among the vanishingly rare cohort of "funny Ito stories". Not quite as nonsensical as, say, Memories of Real Shit or his cat manga, but it's up there. It's ultimately still a horror story, and slowly becoming a spaghetti monster is conceptually kinda terrifying, but the way it's presented means that it isn't quite as scary. Maybe that wasn't the point.
Note: obviously the red string can be cut, considering that's what supposedly starts this whole mess.