Thanks a lot, PB, for the image.
I think my understanding of 'ground loop' from the terribly written self-conflicting Wikipedia article is exactly the blue line loop in your image.
My computer and DAC both come with SPDIF. I once tried connecting them via an optical cable, but couldn't hear any difference vs the USB output to DAC.
Then I did some google search, and it seems some people think the SPDIF output from computers is not optimized for HiFi audio, they are designed for data transfer, so the jittering from SPDIF on computers will be very high due to poor clocking. Not too sure about these technical stuff