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I can recreate the issue here, however looking further into the looping after a ticket is deleted will in fact continue to loop because it's a soft delete and continues checking that data even after removal.
To resolve the loop would require breaking the merge connection in the database, deleting both tickets, or removing the ticket completely from the database.
This all being said, I don't think anyone is expecting a fix for this because it is not expected that you would merge the tickets back AND forth; when merging tickets you are expected to make a choice which ticket you are merging them into... You can't create a looping issue unless you change your mind and merge them in reverse...
Solution: don't merge the tickets one way and then the other.
Thanks for clarifying that!