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Shit! They found me!
I think they got all of us!
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Potential evidence the piracy reporting firm was seeding content themselves?
No, at least not necessarily, it was most likely a miss configuration of a torrent client that caused the loop back address to end up in a DHT.

If you look at DHTs quite often you’ll see local LAN IP addresses in them, so the loopback ending up there isn’t particularly surprising.

Edit: nvm this isn’t a torrent, looks like the XML / config file of pirated TV streams like the ones you get on Kodi, so that was just a miss configuration on the team that maintains the stream pack.

That doesn't look like a BitTorrent file.
Yeah it’s a stream list like the ones you get for various Kodi TV streaming addons, so the group that maintains that just fucked it up.
"We traced the call. It's coming from inside the house!"
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I just tried to browse to 127.0.0.1 and got an error that the site cannot be reach.... What's wrong with me? Am I really here? Do I exist???
That just means you don't have a webserver running on your computer.