Using MIDI effects with LoopBe1

LoopBe1 is a virtual device to allow different midi programs to send signals. It includes a feature to detect short circuits, described here. LoopBe1 - A Free Virtual MIDI Driver

Whenever I use a MIDI effect, LoopBe1 detects it as a short circuit. Any idea what I might be doing wrong?

I never had such a problem with LoopBe1.
You could try loopMIDI from loopMIDI | Tobias Erichsen
It has configurable feedback detection.