I was going through an Exchange Edge server queue and noticed 100+ emails with Last Error “A local loop was detected”

LocalLoop

Did a little investigating and found the primary smtp namespace was set as an internal relay type in the Accepted Domains

AcceptedDomains

Changed these to Authoratative to resolve the local loop issue

https://social.technet.microsoft.com/Forums/exchange/en-US/8e77f4b0-5e34-42b1-a68d-84c894c5976b/exchange-2007-last-error-a-local-loop-was-detected?forum=exchangesvrsecuremessaginglegacy

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