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Neat trick, but probably too limited to be of much use. Also, stopping it is kind of a nuisance.

Why? It only takes one ^C

For me, it doesn't even respond to ^C (or even ^\). I had to ^Z it, and then `kill %1`.

Could be an OS-dependent thing. I'm using OS X.

Indeed. It could use in front of while loop something like:

int_cmd(){exit 1;}trap 'int_cmd' 2;

You get what you pay for.