VLC hangs & crashes if error occurs while video is looping, slows down entire OS

What happened:

Trying to playback a corrupt or tiny file (e.g. incomplete download) and having loop enabled causes VLC Player to flicker as it tries to replay the file & eventually hangs but also affects the entire OS with slowdown until it shuts down

What should happen:

In case of a corrupt file, the error dialog should popup as normal butthe loop state should temporarily clear and the playback pause. In case of a tiny file, maybe have some threshold (configurable in the options) or handle looping better? So that the user can anytime switch off looping or close the video file.