Cause of Loki's down fall was Baldr's death and mentioning it here in his poetic quarrel the Lokaseena.
It was fashionable at the time to have these poetic quarrels at feast times and if you got a rise out of your victim you win in the eyes of the observer. He got a rise but he went way to far they hunted him down caught him in the form of a salmon bound him in the intestines of one of his sons to a pointed rock and put a serpent over him dripping venom on his head and his wife Sigyn catches it in a bowl which when she empty's it venom hits Loki and his shudders cause earthquakes.
