The mission Precision strike states the following "When a squadron with Bomber or a ship is attacking, it may spend 1 die with a Hit icon to flip 1 random facedown damage card on the defender faceup."

Structural damage states the following "Deal an additional damage card to this ship, then turn this card facedown."

I am curious if it was intended to create an infinite damage loop cycle (potentially) with these two cards.

Granted, blue dice slingers are going to be the obvious abusers in this situation (VSD 2, ISD 2, MC-30, MC-80, CR-90, Firespray, B wing, Scurg H-6, etc.), even though red dice can attain accuracy results. Sure, it says "random" but it is just creating a growing pile of face down cards to just be flipped back up again potentially retriggering the effect over and over again. I mean, most other damage cards stay face up after all thus ensuring that it will happen without being required to bypass the shields or even do legitimate damage to the target due to order of operations of allocating accuracies by spending and no way to stop it. Yeah, some damage had to slip through originally, but ramming is pretty "free" in terms of assigning damage in that regard.

It's not infinite because it will have to be randomly picked and you can only use the Precision Strike once per attack.

The time when this would matter more is early damage stack where the chance of it coming up is either automatic or at worst 50%.

Late damage stack it wouldnt really matter since the ship is more than likely going down anyhow, unless it is a large class ship. Most of the time when cards are getting dealt and a stack exists, the ship won't be around much longer anyhow. Dodonna making this setup easier to manipulate of course.