Etymology
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loopy (adj.)

1856, "full of loops," from loop (n.) + -y (2). Slang sense "crazy" is attested from 1923. The earlier figurative sense was "crafty, deceitful" (1824), popularized by Scott's novels.

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Definitions of loopy

loopy (adj.)
consisting of or covered with or having loops;
loopy (adj.)
informal or slang terms for mentally irregular;
Synonyms: balmy / barmy / bats / batty / bonkers / buggy / cracked / crackers / daft / dotty / fruity / haywire / kooky / kookie / loco / loony / nuts / nutty / round the bend / around the bend / wacky / whacky
From wordnet.princeton.edu