I thought that the local IP address of my machine is 127.0.0.1
I do not understand why am I able to ping IP addresses until 127.255.255.254
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The 127.0.0.0/8 hosts are "loopback" addresses, which enable you to contact the local host through a network socket (but this will not require any network interface card, as this bit of the Ethernet protocol is directly managed by the kernel). You are able to send ping request from your local host and get a reply ; this is just the way it is meant to be. However, these addresses will not be accessible from other hosts.
Let me know if you have more specific questions!