Quoth Pixelated
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It's a loopback, originally designed as a way to test networking software without worrying if the networking was actually working in the computer.
For example;
You have a super duper program that will remotely kill a computer. Just need to tell it the internet address of the target. (For example google.com comes up as 172.217.3.164 for me.)
Tell your software to run on 172.217.3.164 and it will attack Google's servers.
Telling it to run on 127.0.0.1 is telling the software to attack the computer you are currently using.



Which for these folks, hopefully means that very shortly their computer turns into the Wicked Witch of the West after her shower.

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