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So can you help with the term 'fiercely loyal' that's on one of my old references...?
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I would take that as a good thing although a little overboard

It would sound to me like they liked you and were going a little extra to give you a good reference. That in itself is a good sign.
That's what I would get out of it if I were checking your references, of course it would depend on the whole conversation but that part sounds good to me.