I wouldn't want it to be able to rotate freely ( I believe that is what you are saying). As mine is, snug and tight, when I go to attach my release I knowthe loopwill be extended behind the nock. That would be important to me in a hunting situation, not "searching" for the loop.

Perhaps you can try a different material. Have you tried putting needle nose pliers in the loop and openeing them to tighten the loop down?