To prevent symbolic links linking back to themselves and causing an infinite loop in the kernel, the kernel stops after a certain number of symbolic links have been followed with ELOOP. This doesn't necessarily mean that there is a loop, but that there are too many symbolic links encountered.
The maximum number of symbolic links followed is currently 5 (with Linux 2.4.27). To match other operating systems with higher limits (e. g. Solaris 9 with 20, FreeBSD 5.3 with 32), there is ongoing work to increase that limit.
20 pages link to ELOOP:
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