Actually, logically, if you drag to the right you'd be looking for the start of a transient and you'd want the loop to extend to the left of the cursor. If you drag to the left, you'd be looking for the end of a transient (or whatever) and you'd want the loop to extend to the right of the cursor. In other words, the loop should trail behind the direction the cursor is moving in. So the way it worked would be automatic - if it could be programmed.
Either I've hit on a brilliant and unique idea, or I've made a complete fool of myself...
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