mail SMTP client-server loop detected

Hi all, I started to have strange problem with email. So I have my personal email address @me.com and few business email addresses on a specific server. No matter if I send from mac or iPhone an email from my @me.com to other email addresses I have on that specific server, emails are not delivered and after a while I get the attached error message. It works the other way around, only from my.email.address@me.com to that specific server doesn't work.

Apart this I have no other problem with mail.

Any idea how to fix it?

Thank you