If you understand that Oda doesn't give a shit about logical consistency and is a hype merchant this whole Loki issue becomes extremely easy to understand.
Let's just go back one arc to Wano and you will see mutiple examples of this.
I remember when the rooftop battles started and mofos had all of the rooftop 5 above YC1s (at the very least Kat) because they were able to "damage" Kaido. Hell I remember mofos putting Killer over Act 1 Wano Luffy

. Fast-forward to the end of the arc do any of y'all still hold that view. The whole rooftop 5 ting was all Wano promo for Oda to sell the Wano arc with the supernova at the fore front of it. Angle he was selling was "new generation toppling the old guard" etc. We even got some spicy shit from Oden's journal. Fast-forward to the current timeline, where's that new generation now

. We had Kidd and his whole posse one tapped by Shanks and Law getting wrecked by Teach effectively dropping them out of the race for PK.
Let's even go one step further and talk Zoro on the rooftop. Zoro was very impressive on the rooftop, this mofo was outhcea blocking a combined attack from a Yonko (albeit temporary that is a mad feat lets be honest) and slicing up Kaido left, right and center so much so that Zoro fans were convinced that ZKK was on the precipice of happening and that a YC1 in King was beneath him but he ended up fighting King and getting paired with Sanji as one of Luffy's wings. Zoro was bascially the poster boy for the Samurai on Wano and Oda was tryna sell him as the second coming of Oden/Ryuma basically so he gassed him to the fucking moon.
Then there's Shanks who he sacrficed greenbull (a newly introduced admiral by the way) to promote film "Red" a movie about Shanks.
This man had Shanks wifi diff and Admiral and force him to retreat from his bloody ship miles away from Wano. Deep that shit.
And in the very next arc had the man who just beat Kaido (World's strongest creature who some will put over Shanks due to that title) bricking it at the arrival of an Admiral in Kizaru and have Kizaru outperform him coz he wanted to gas up the Admirals as "strong".
I can go on and on and on...
This is how Oda operates, he will milk whatever he wants to sell to the heavens and then after he's got your attention as intended he will shamelessly roll it back like nothing happened. This is not even just a PL ting he does this with deaths in OP, take Kiku on Wano for example.
Anways, I went on a slight tangent htere but this is why I always say that feats are great and all but the narrative will always take priority over that. I'm not saying that we should completely throw feats out the window but keep in mind that Oda regulalry abuses that to sell whatever the frick he's trying to gas up. In this case it is "Loki's DF".
Don't really fault folks that are glazing Loki to the heavens and calling him god-tier etc, as Oda is fuelling that but again just keep the above in mind lol. At this point I'm not even going to rationalize Loki's feats etc what I do know is that Loki hype is going to end up being Shanks glaze and Nika is going to outperform Loki this arc as that is what he narrative is telling us.