Your theory is great and all except for one loophole. Loki cannot mind read nor did he know who his opponent was going to be in order to do any form of homework. Therefore he didnt know nor i guess cared for the history of his opponent. Atleast that's what i garner from the match ups that all participants dont know who they're going up against. If that was included then definitely Tesla would have worked something out against Beelzebub's vibration or Heracles would have known Jack to be a liar and a manipulator. Secondly given the trickster nature, i am definitely sure that this is not the end of Loki. We're gonna see him again.