Yes the wire that goes to the switch does form a loop. Confusingly, often the wire that’s “supposed” to be the neutral or white wire is, in this configuration used as a “hot” or black wire. If you look closely at the picture, the white wire running between the light and the switch has little black sections at either end. This is supposed to be representing the idea that, in this case, the white wire is being used as black. Glad it’s working now.