That's not what's happening because that's not how LabVIEW works. Both loops start up when you start the VI. Once the second loop starts it reads the value of that control. It's False. In all likelihood the other condition is also False, which means the loop control terminal receives a False, and therefore stops after one iteration. Meanwhile, the other loop is happily going on because the control is False. Run your VI in the development environment with execution highlighting on (the light bulb in the toolbar), and you will see what it happening.
