Charlotte Hames, 30, from Derbyshire, said her son Buddy George had stopped breathing and turned blue following the accident on Monday.
She tried to revive him before he was rushed to hospital. He has since made a full recovery.
Hames has warned other parents about the bed's dangers.
She said: "I was in the bathroom and thought Buddy had gone quiet so I shouted up to him but got no response.
"I had a gut instinct something was wrong so rushed to our bedroom where he'd been playing and found him hanging by his neck from the bed's lifting loop.
Hames and Buddy's father Anthony Ancliff, have warned other parents about the lifting loops on ottoman-style hydraulic beds, the BBC reported.
"We don't want anyone else to go through what we've been through this week," said Ancliff.
Derbyshire County Council, whose trading standards team is investigating, said the bed had a 1ft loop which is pulled to start the lifting action before the hydraulics take over.
The authority said it was speaking to the Bed Federation about suspending "the supply of similar products currently available" and having them modified to remove the loop.
"The strap effectively created a ligature that lifted him off his feet and it is only the fact that his mother found him in time that we are not dealing with a terrible tragedy," Allen said.
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