Celes, Persist and Massacre Girl

So me and some friends just finished a game, where this trio came into question.

There was enough creatures on the battleground that we came to the conclusion that everything but Massacre Girl would die.

But lets say hypothetically there is only 3 creatures on the board when Massacre Girl is played
One 1/1
A 2/2 with Persist
Celes (4/4)

The 1/1 dying causes the 2/2 with Persist to die and then return. Celes ability makes the Persist creature go even on negative and positive counters and Celes gets one +1/+1 counter
Then the Persist creature dies again due to negative toughness, which causes it to return and trigger Celes ability again and it loops for infinity.

Is that the correct way to resolve this?