I'm just gonna come right out and tell you that this story has absolutely nothing at all to do with the storylines in Thor, The Avengers, or Thor: the Dark World. I only stole the characters, Loki and Odin.
As always, Loki and friends do not belong to me. They belong to either Marvel or Norse mythology, whichever you like.
"Enough, Loki!" Odin boomed over Loki's laughter, "Do you not see what you have done?" It was a tense atmosphere surrounding them all, accentuated by the laughing, to which only Loki contributed. Catching his breath, Loki replied, looking up at Odin, "Ehehehe... It was just a small trick, father!" Odin's brow darkened as he gestured to the Asgardians who had become victims of Loki's 'trick'. "'Just a small trick' does not end with people being harmed!" he barked, making Loki finally look around him to see the damage he had caused. Several people lay on the ground, some merely knocked unconscious, some bleeding from wounds. His eyes locked onto a little boy, crying over what could only be his father as his mother (and the man's wife) glared back at him. Loki's eyes widened as he realized his mistake. He tried to summon words to explain himself. "This is... I didn't-" he stammered, quailing under the Allfather's disapproving scowl as Odin's rage visibly grew. "You didn't think it through? You didn't plan ahead? Or was it just that you didn't scheme a way to get yourself out of trouble?" Odin questioned in a loud, clear voice that everybody present could hear. He circled around towards Loki, the latter standing there meekly, awaiting his punishment.
It was all an act, of course. On the outside, Loki wanted to appear appropriately penitent in order to get out of this. Even if he couldn't, the worst he was expecting was the usual: a light slap on the wrist accompanied by a scolding, and then he'd be on his way to cause chaos again, as was his nature. As expected, Odin continued speaking and Loki drifted off a little, replacing Odin's words with "Blah, blah, blah" in his own mind as he kept up his outward act. Suddenly, he was jarred from his reverie as Odin pointed Gungnir towards him, shooting a beam at him which divested him of his royal armor, leaving him wearing naught but commoner's clothes. Wait. Waitwaitwaitwait. This is not supposed to happen. What's going on? Frantically, Loki tried to grasp onto what Odin said next. "Time and again, you have done this, Loki. You must be taught a lesson in thinking of others above yourself, in understanding other peoples' pains and not only your own," Odin rumbled as Loki looked on in horror. He won't. He wouldn't, Loki thought, Would he? "I hereby sentence you to exile on Midgard. With you, you take a curse; you will feel the pain of every being around you. I, Odin Allfather, cast you out!" Odin decreed, raising Gungnir again to point at Loki. Loki raised his hands in desperation, crying, "Wai-" But his plea for reconsideration was unheard. The last thing Loki saw was another beam shooting at him before all went black.