A loop network hub port with an automatic bypass feature. The automatic bypass feature causes the hub port to enter a bypass mode upon detection of a specified loop failure initialization sequence from a node port attached to the hub port. The hub port does not propagate loop failure initialization data generated by the attached node port upon the failure of a data channel from the hub port to the node port. The hub port replaces loop failure initialization data received from the node port with buffer data and conceals the node port failure from the remainder of the loop. Upon detection of the loop failure initialization sequence received from the attached node port, the hub port enters a bypass mode and maintains that bypass mode until a recovery sequence is received from the node port. At that point, the hub port reinserts the node port into the loop.