* IDs. This check is performed during type graph equivalence check and
  * referenced types equivalence is checked separately.
  */
-static bool btf_equal_struct(struct btf_type *t1, struct btf_type *t2)
+static bool btf_shallow_equal_struct(struct btf_type *t1, struct btf_type *t2)
 {
        struct btf_member *m1, *m2;
        __u16 vlen;
                struct btf_member *cand_m, *canon_m;
                __u16 vlen;
 
-               if (!btf_equal_struct(cand_type, canon_type))
+               if (!btf_shallow_equal_struct(cand_type, canon_type))
                        return 0;
                vlen = BTF_INFO_VLEN(cand_type->info);
                cand_m = (struct btf_member *)(cand_type + 1);
 static int btf_dedup_struct_type(struct btf_dedup *d, __u32 type_id)
 {
        struct btf_dedup_node *cand_node;
-       struct btf_type *t;
+       struct btf_type *cand_type, *t;
        /* if we don't find equivalent type, then we are canonical */
        __u32 new_id = type_id;
        __u16 kind;
        for_each_dedup_cand(d, h, cand_node) {
                int eq;
 
+               /*
+                * Even though btf_dedup_is_equiv() checks for
+                * btf_shallow_equal_struct() internally when checking two
+                * structs (unions) for equivalence, we need to guard here
+                * from picking matching FWD type as a dedup candidate.
+                * This can happen due to hash collision. In such case just
+                * relying on btf_dedup_is_equiv() would lead to potentially
+                * creating a loop (FWD -> STRUCT and STRUCT -> FWD), because
+                * FWD and compatible STRUCT/UNION are considered equivalent.
+                */
+               cand_type = d->btf->types[cand_node->type_id];
+               if (!btf_shallow_equal_struct(t, cand_type))
+                       continue;
+
                btf_dedup_clear_hypot_map(d);
                eq = btf_dedup_is_equiv(d, type_id, cand_node->type_id);
                if (eq < 0)