I've been watching a talk given by Van Jacobson in which he casually claims that IP tries to route on a spanning tree, as not doing so results in loops which can quickly bring down a network. He then goes on to say that one of the disadvantages here is lost capacity, because you end up removing some edges from your connectivity graph which represents idle links.
Intellectually, I understand the concept of a spanning tree and that when you add any edge to a spanning tree you create a cycle. However, I'd still really like to see an example of how this plays out in practice with IP, in the context of the routing state that would develop at each node/lead to looping data. Can anyone provide a small isolated example to clarify my understanding?