This is beyond belief.
A wannabe hacker was ticked off because he thought he'd been kicked out of a chatroom. He angrily demanded that the moderator send over his IP address and prepare to be hacked.
The moderator was no fool, and sent the IP address 127.0.0.1, which is simply a shortcut to a user's current computer.
Here's where it gets surreal: the hacker FELL for it.
To put it simply, he was tricked into hacking HIMSELF.