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Postfix mail for domain.com loops back to myself Error and Solution

I can send and receive mail using user@example.com, but system generated emails such as root@mail.example.com bounce backup with an error:

May 1 03:14:52 mail postfix/smtp[62798]: 23CA4BD6B40: to=, relay=none, delay=0.01, delays=0/0/0/0, dsn=5.4.6, status=bounced (mail for mail.example.com loops back to myself)

How do I fix this error?
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