In Doctor Strange #385 Loki admits that he wanted to make Dr. Strange stronger for the threads to come, e.g. Damnation. However, in Doctor Strange: Damnation #1 it is established that Doctor Strange (a) causes Damnation (in an act that was very stupid, he was probably high on power) and (b) only could do so because Loki made him acquire more power. At the moment we cannot know what Loki knows or how he knows it, but the situation seems very paradox to me. Also Strange still seems unaware that this is part of what Loki warned him about. EDIT: In issue #387 some form of subconscious image of Loki Stephen has himself points out that this is what he warned him about. So in a way, Strange realized by now.
In Doctor Who's episode "The Time of the Doctor" the Doctor (not Strange) says “The destiny trap. You can’t change history if you’re part of it.” upon how a part of an organization went back in time to avoid a series of events, only to become part of the cause. I wonder if this applies to Loki as well.
Question: Is Loki part of a paradox he is unable to change, or are there other reasonable explanations?
I think it would be very hard to know about what Damnation is (which I assume is true for Loki, since he considers it a threat) and not recognize that a powerful wizard did it. In other terms, I think Loki is too intelligent not to know that Stephen will cause it.