I was just reading the FAQ on Star Fluxx as it is one of my favorite games. In reference to this question, if I understand this correctly, it is an option to discard the Cute Fuzzy Alien (CFA) to comply with the Keeper Limit, or pass it on before complying. If you discard it to comply, it then goes on top of the draw pile. But if the next player is in an identical situation he can do the same (discard it to comply with the Keeper Limit, thus putting it on the draw pile)? If the rule is draw one, this keeps on happening until someone decides not to discard fuzzy or just passes it along? Is this correct?

A: So the answer is yes, mostly. In order for it to be a truly limiting loop, everyone would also have to be at zero cards in hand, so that they are forced to play the one card they draw. Otherwise, they could draw the CFA, and decide not to play it (after all, it’s not a Creeper!) or they’d have the possibility of other card plays in addition to the CFA, which could possibly break the cycle in any number of ways, like changing or getting rid of the Keeper Limit, increasing the Draw or Play rules, or even changing the Goal (there are some Goals which the CFA could make someone win!)

Also note that in this case there is very little difference between deciding to discard it, and deciding to pass it. If the next player is at already at the Keeper Limit, they have to comply before drawing anyhow, so if they don’t sacrifice some other Keeper, they’ll just end up drawing the CFA themselves anyhow. At least if you pass instead of discarding it, it’s up to them whether they want to sacrifice some other Keeper so that they aren’t forced to draw the CFA again.

Aside from that, yes, you are correct, it will continue if everybody is really stubborn and chooses not to break the cycle. And yes, the two ways one might break the cycle would be:

a) To pass before complying with the Keeper Limit instead of discarding the CFA to comply, which would allow the next person to choose to discard a different Keeper instead.
or
b) By choosing to discard some other Keeper oneself, only reaping the benefits of that choice indirectly in that it keeps the game going.

Note that Weyoun in Star Trek: DS9 Fluxx also goes on the draw pile when discarded from play… except that, unlike the CFA, he does not automatically move around the table, so you don’t have an option to pass vs. discard, your only option is b) to discard him, or not to discard him (that is the question!) Discarding him ends up causing him to be passed along in the Draw to the next player. Not discarding him would not end up passing him along.