Way back when the gods were first settling the area a builder shows up and says that he can build a fortification for them in three seasons that will keep all invaders out. All he wants is Freyja, the sun, and the moon. They want this incredible fortress but don’t want to pay for it. The gods try to figure out a way to screw the builder out of the bet and agree only after laying down a bunch of conditions on the builder. The important condition is that no man is able to help him build. The builder tricks all of the gods and brings out this amazing horse named Svaoifari. He and the horse begin working on the fortress and because this horse is such an amazing worker it looks like the gods are going to have to pay up.
The gods are all pissed that the builder has tricked them and blame Loki. He’s the trickster god; certainly he should have been smart enough to stop this from happening. With three days left before the deadline Loki comes up with a plan. He changes shape into a mare and approaches Svaoifari. Seeing the mare, the horse breaks free from its restraints and chases after the mare all night. The builder is unable to finish the fortress because he is unable to reign in his horny horse and spends the nice chasing after him. A while after this Loki gives birth to Sleipnir. Loki gives birth to an eight legged horse. I think it’s important here to mention that the other gods didn’t look down on Loki for getting him some of that sweet, sweet horse meat. He was pretty much doing it because when the Norse gods wanted someone tricked they went to Loki. The other fun part of this story is when gods find out this mystery builder was actually a frost giant; Thor just outright kills him.
So what does all this have to do with the new Loki being bisexual and all the arguments around it? Nothing really I suppose. I just wanted to point out that Loki has already turned into a female horse, had sex with a horse, and gave birth to a freak horse. This is a character that gives birth to horses and fathers giant wolves; it seems silly to compare him to real life human standards and morals.