How to avoid collision detection to enter infinite loop in this case?

I am writing a collision detection system which uses the logic mentioned by Trevor here

But I have anticipated a problem which I have shown as a diagram

How do we handle this problem?

Answer

Solution: You only detect and react to a collision on an object once per frame. This would move the second collision detection in step 3 to the next frame so that it will not enter an infinite loop and freeze.

Problems with the solution: If the two objects are not springs, but are instead solid objects you will see an age-old problem where it will look like the object shoots out at very high velocities from where it was. This may or may not be an issue either by the design of the game in question or simply because it would not matter if it does happen. Two common solutions when this happen, both of which require detection of the situation, is to remove the object either outright, or apply damage to it or the like or to alternately scan for the nearest 'open' area and move the object to that location.

Hope this helps