diff --git a/src/formatters/formatter-issue920.test.ts b/src/formatters/formatter-issue920.test.ts
new file mode 100644
index 00000000..65dfa0a4
--- /dev/null
+++ b/src/formatters/formatter-issue920.test.ts
@@ -0,0 +1,118 @@
+import { describe, it, expect, beforeEach } from "vitest";
+import { Formatter } from "./formatter";
+
+// Regression tests for issue #920:
+// - Entering `{{value}}` (or text containing it) into the VALUE prompt caused an infinite loop.
+// - Entering `{{mvalue}}` into the math modal caused repeated prompting / non-termination.
+class Issue920TestFormatter extends Formatter {
+	private valueResponse = "";
+	private mathResponse = "";
+
+	constructor() {
+		super();
+	}
+
+	public setValueResponse(value: string): void {
+		this.valueResponse = value;
+	}
+
+	public setMathResponse(value: string): void {
+		this.mathResponse = value;
+	}
+
+	protected async format(input: string): Promise<string> {
+		let output = input;
+		output = await this.replaceValueInString(output);
+		output = await this.replaceMathValueInString(output);
+		return output;
+	}
+
+	protected promptForValue(): string {
+		return this.valueResponse;
+	}
+
+	protected getCurrentFileLink(): string | null {
+		return null;
+	}
+
+	protected getCurrentFileName(): string | null {
+		return null;
+	}
+
+	protected getVariableValue(variableName: string): string {
+		return (this.variables.get(variableName) as string) ?? "";
+	}
+
+	protected suggestForValue(): string {
+		return "";
+	}
+
+	protected suggestForField(): Promise<string> {
+		return Promise.resolve("");
+	}
+
+	protected promptForMathValue(): Promise<string> {
+		return Promise.resolve(this.mathResponse);
+	}
+
+	protected getMacroValue(): string {
+		return "";
+	}
+
+	protected promptForVariable(): Promise<string> {
+		return Promise.resolve("");
+	}
+
+	protected getTemplateContent(): Promise<string> {
+		return Promise.resolve("");
+	}
+
+	protected getSelectedText(): Promise<string> {
+		return Promise.resolve("");
+	}
+
+	protected getClipboardContent(): Promise<string> {
+		return Promise.resolve("");
+	}
+
+	protected isTemplatePropertyTypesEnabled(): boolean {
+		return false;
+	}
+
+	public async testFormat(input: string): Promise<string> {
+		return await this.format(input);
+	}
+}
+
+describe("Issue #920: VALUE/MVALUE self-references should not hang", () => {
+	let formatter: Issue920TestFormatter;
+
+	beforeEach(() => {
+		formatter = new Issue920TestFormatter();
+	});
+
+	it("treats {{VALUE}} returned from the VALUE prompt as literal (no recursion)", async () => {
+		formatter.setValueResponse("{{VALUE}}");
+		const result = await formatter.testFormat("Start {{VALUE}} End");
+		expect(result).toBe("Start {{VALUE}} End");
+	});
+
+	it("does not recursively expand {{VALUE}} inside user-provided VALUE input", async () => {
+		formatter.setValueResponse("prefix {{VALUE}}");
+		const result = await formatter.testFormat("A {{VALUE}} B {{VALUE}} C");
+		expect(result).toBe("A prefix {{VALUE}} B prefix {{VALUE}} C");
+	});
+
+	it("treats {{MVALUE}} returned from the math prompt as literal (no recursion)", async () => {
+		formatter.setMathResponse("{{MVALUE}}");
+		const result = await formatter.testFormat("Start {{MVALUE}} End");
+		expect(result).toBe("Start {{MVALUE}} End");
+	});
+
+	it("does not recursively expand {{MVALUE}} inside user-provided math input", async () => {
+		formatter.setMathResponse("prefix {{MVALUE}}");
+		const result = await formatter.testFormat("A {{MVALUE}} B");
+		expect(result).toBe("A prefix {{MVALUE}} B");
+	});
+});
+
diff --git a/src/formatters/formatter.ts b/src/formatters/formatter.ts
index 147ba7b1..0b1d6b12 100644
--- a/src/formatters/formatter.ts
+++ b/src/formatters/formatter.ts
@@ -130,16 +130,24 @@ export abstract class Formatter {
 	protected async replaceValueInString(input: string): Promise<string> {
 		let output: string = input;
 
-		if (this.variables.has("value")) {
-			this.value = this.variables.get("value") as string;
-		}
+		// Fast path: nothing to do.
+		if (!NAME_VALUE_REGEX.test(output)) return output;
 
-		while (NAME_VALUE_REGEX.test(output)) {
-			if (!this.value) this.value = await this.promptForValue();
+		// Preserve programmatic VALUE injection via reserved variable name `value`.
+		if (this.hasConcreteVariable("value")) {
+			this.value = String(this.variables.get("value"));
+		}
 
-			output = this.replacer(output, NAME_VALUE_REGEX, this.value);
+		// Prompt only once per formatter run (empty string is a valid value).
+		if (this.value === undefined) {
+			this.value = await this.promptForValue();
 		}
 
+		// Replace all occurrences in a single non-recursive pass.
+		// Important: use a replacer function so `$` in user input is treated literally.
+		const regex = new RegExp(NAME_VALUE_REGEX.source, "gi");
+		output = output.replace(regex, () => this.value);
+
 		return output;
 	}
 
@@ -358,13 +366,21 @@ export abstract class Formatter {
 	protected abstract promptForMathValue(): Promise<string>;
 
 	protected async replaceMathValueInString(input: string) {
-		let output: string = input;
+		// Build the output by scanning the current input once.
+		// This avoids infinite replacement loops when the provided math input contains {{MVALUE}}.
+		const regex = new RegExp(MATH_VALUE_REGEX.source, "gi");
+
+		let output = "";
+		let lastIndex = 0;
+		let match: RegExpExecArray | null;
 
-		while (MATH_VALUE_REGEX.test(output)) {
-			const mathstr = await this.promptForMathValue();
-			output = this.replacer(output, MATH_VALUE_REGEX, mathstr);
+		while ((match = regex.exec(input)) !== null) {
+			output += input.slice(lastIndex, match.index);
+			output += await this.promptForMathValue();
+			lastIndex = match.index + match[0].length;
 		}
 
+		output += input.slice(lastIndex);
 		return output;
 	}