It means you don't have a properly controlled loop. Sometimes using Next Frame Event works, other times the problem is more fundamental and just a poorly designed loop without proper logic gates. If you turned off the 1000 loop catch then your framerates would plummet due to this bad loop needlessly running so many times.
For instance, you have State 1 where you do Float Add and FINISHED transition to State 2 which does something else and also uses FINISHED to go back to State 1..
In this case, the loop is going to immediately transition as soon as the action stack in State 1 is finished, which will take pretty much no time at all, then go to State 2 and when its done, continue the loop. Sounds like... A loop, right? Yeah, but it's totally ballistic! Playmaker will catch the 1000+ error because in a single frame it ran this loop that many times since there is no gate that says wait for this event, wait for a period of time, or whatever. Its a bad loop. In the event that you had to do this loop a specific number of times then this would be fine, for instance creating random jewels on a screen or something and iterating through them until finished.
To fix it, you could 1) Put it all in State 1 and run it every frame. That would make it only run once per frame, instead of doing it as fast as possible in the same frame. 2) Use a Next Frame Event to tell it to wait one frame before sending a transition. 3) Tie the loop to some other logic that it depends on so that it executes the loop on an as-needed basis.