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local loop was detected

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Exchange 2013 cu4

I have recurring errors in my queue. the message recipient list are as follows:

bugs@acme.com, daffy@acme.com, elmer@fudge.com

my internal users are the @acme.com recipients. Elmer is the email address of a supplier.

the sender of the message uses mps@acme.com (a non-existing email address; not even a mailbox) that we use just to have a From: address.

i'm not sure how to start troubleshooting this so what I did is to make sure if the ip address of the sending server is listed in my receive connector that are allowed to relay. in my thinking, I should not because i'm authenticating the application before sending using a domain user account.

I have added the ip address of the sending server in my receive connector and will see if the local loop message disappears.

below are the error messages:

FromAddress : mps@acme.com
LastError   : A local loop was detected.
Recipients  : {mps@acme.com;2;0;[{LRT=};{LED=};{FQDN=};{IP=}];0;;0}
Queue       : MB01\Submission


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