Hi!
It should be a basic requirement of any SPARQL engine that it should be able to handle path queries that contain cycles.
So I did some simple checks, and on simple examples Blazegraph handles cycles just fine. However, on more complex queries, the cycles seem to be causing trouble. I don't know yet why, I'll look at it further, probably next week.
So the problem is not "handling cycles" in general, it is handling some specific data set, and most probably is a consequence of some bug. I'll report when I have more data about what exactly triggers the bug.