Here is my simple solution:

You can tail another player as normal.

But, if by tailing another player, that will cause a tailing loop, (because other players have already tailed others and you're the one to cause it) you are simply not offered that option.

You won't see the "obtain the Tail from" Electro dialog.

You will have the option to tail anyone else, as long as that doesn't cause a tailing loop.

So, whats the downside? The players who make their turns last, might not get a chance to tail someone. But, the upside is that they know someone is tailing them. (I usually just assume that in every game.)

This is one of the simpler solutions I've thought of. Everything else has to wait for the loop to occur then apply some arbitrary logic about who can't tail.

Thoughts and suggestions please!