Loopy is slang for "crazy", but I think it should be repurposed to refer to the quality of thinking the same sorts of thoughts over and over again, never breaking patterns, being stuck indefinitely at the same stage of intellectual development. You could argue that this is a form of craziness compared how an ideal agent would allocate cognitive resources, but I think it's pretty normal and common in our world, not the kind of craziness generally recognized as crazy.