Your example doesn't crash with only 1 line, because Alias Zzz is only called when 2 or more lines are filtered. The purpose of the alias is for sorting, and should not be used for anything extraneous.
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Another thought...
Try not writing to a text file while /filter is accessing it.
You are probably screwing up /filter's perceived notion of the file's size by adding to the file while it reads. This may or may not be the cause of the crash.. but you shouldn't be doing it anyway.
If your example weren't to crash mIRC, it would process infinitely... writing to the file and window at an exponential rate.
- Raccoon