Techniques are provided to detect and correct for packet loops associated with network traffic that passes through a wide-area application services (WAAS) device in a data center network environment. The WAAS device receives a packet from a device in a first data center. The WAAS device determines the directionality of the packet relative to a destination device of the packet. The WAAS device also determines whether the packet has an indicator that associates the packet with the WAAS device. Based on whether the packet has an indicator that associates the packet with the wide area application services device, the WAAS device inserts an indicator within the packet when the directionality of the packet indicates that the packet is to be transmitted across a wide area network (WAN), wherein the indicator comprises information that associates the packet with the WAAS device. The WAAS device forwards the packet to a network based on its directionality.