diff --git a/node_modules/vfs-local/localfs.js b/node_modules/vfs-local/localfs.js
index f9376f77..1984e00d 100644
--- a/node_modules/vfs-local/localfs.js
+++ b/node_modules/vfs-local/localfs.js
@@ -350,7 +350,7 @@ module.exports = function setup(fsOptions) {
 
     // This helper function doesn't follow node conventions in the callback,
     // there is no err, only entry.
-    function createStatEntry(file, fullpath, callback) {
+    function createStatEntry(file, fullpath, callback, _loop) {
         fs.lstat(fullpath, function (err, stat) {
             var entry = {
                 name: file
@@ -378,26 +378,29 @@ module.exports = function setup(fsOptions) {
                     return callback(entry);
                 }
                 fs.readlink(fullpath, function (err, link) {
-                    if (entry.name == link) {
-                        entry.linkStatErr = "ELOOP: recursive symlink";
-                        return callback(entry);
-                    }
-
                     if (err) {
                         entry.linkErr = err.stack;
                         return callback(entry);
                     }
+                    var fullLinkPath = pathResolve(dirname(fullpath), link);
+                    if (!_loop) {
+                        _loop = {fullLinkPath: fullpath, max: 100};
+                    }
+                    if (fullLinkPath.toLowerCase() == _loop.fullLinkPath.toLowerCase() || _loop.max --< 0) {
+                        entry.linkErr = "ELOOP: recursive symlink";
+                        return callback(entry);
+                    }
                     entry.link = link;
-                    resolvePath(pathResolve(dirname(fullpath), link), {alreadyRooted: true}, function (err, newpath) {
-                      if (err) {
-                          entry.linkStatErr = err;
-                          return callback(entry);
-                      }
-                      createStatEntry(basename(newpath), newpath, function (linkStat) {
-                          entry.linkStat = linkStat;
-                          linkStat.fullPath = newpath.substr(base.length) || "/";
-                          return callback(entry);
-                      });
+                    resolvePath(fullLinkPath, {alreadyRooted: true}, function (err, newpath) {
+                        if (err) {
+                            entry.linkErr = err;
+                            return callback(entry);
+                        }
+                        createStatEntry(basename(newpath), newpath, function (linkStat) {
+                            entry.linkStat = linkStat;
+                            linkStat.fullPath = newpath.substr(base.length) || "/";
+                            return callback(entry);
+                        }, _loop);
                     });
                 });
             }
diff --git a/plugins/c9.fs/fs.cache.xml.js b/plugins/c9.fs/fs.cache.xml.js
index dda745dd..c9ad1844 100644
--- a/plugins/c9.fs/fs.cache.xml.js
+++ b/plugins/c9.fs/fs.cache.xml.js
@@ -561,8 +561,8 @@ define(function(require, exports, module) {
                     node.size = stat.size;
                 if (stat.mtime != undefined)
                     node.mtime = stat.mtime;
-                if (original_stat)
-                    node.link = stat.fullPath;
+                if (original_stat || stat.linkErr)
+                    node.link = stat.fullPath || stat.linkErr;
                 node.isFolder = isFolder;
             }