Lighter, Historical Dictionary of American Slang:
fruit-loop n. [sugg. by 'Fruit Loops' a trademark for sweetened breakfast cereal and FRUIT, n. 4&5]
1. a crazy or eccentric person; FRUITCAKE, 1; (also) an effeminate homosexual man; FRUIT, 4.
2. fag-tag
fruit n.
[...]
4. an effeminate male; a male homosexual. -- used derisively. -- occ. used collect.
5. a crazy or silly person; FRUITCAKE, 1. Also as quasi-adj.
http://www.macquariedictionary.com.au/mdi1000...fruit loop
noun a loony; someone of unsound mind.
http://www.urbandictionary.com/define.php?ter...fruitloop
1. a friend that makes you laugh
2. term of endearment
http://www.csupomona.edu/~jasanders/slang/csr...fruit (n)
A loser, fool, or stupid person. You fruit; I can't believe you locked your keys in your car! [SUNY, Stony Brook, Stony Brook, NY, 1998]