RE: Engine quits on a loop what could be wrong?
The first thing I would check is the tank and clunk.
Try the same test you did, but do it with a half-full tank. If it continues to run while held vertically, try continuing to rotate it to inverted (Easy to do if you put a person on each wingtip).
Could be the clunk is stuck at the bottom, or you have a split somewhere in the clunk line.