I looked on Crisis Core and there Sephiroth does sound more like "He, he, he,...", but looking on other games translations there does lough even the great Fou-Lu with "Ha,ha... ha, ha,ha,". Things would be easier, if the font would allow cursive characters just to indicate a connection between Sephiroth and Cloud.
Sure it's a shame that this can't be transported into the English translation, it is on the other hand not a huge lost since there enough other obvious connections.