1.)To trick or fool someone in a funny way where the party being tricked has no idea but others know.
2.)When someone is unknowingly the butt of a joke whilst other laugh and mock them behind their back
Example:
Damn she just got sugar looped so hard. She doesn't even know that he's just being nice to get what he wants.
Did you just hear me sugar loop the shit out of her she thinks we are friends.