Your fiddle still exhibits the issue. If you expand the 3rd player and then open his team property and then the team's players property and then the 3rd player, you will see that you can continue that on and on.
Does this really have something to do with live binding and garbage collection?
I "think" it possibly has something to do with the processing parsing of the models and when it is processing the Team property of Player and it gets to the "players" property and sees a player with an ID of player model it already knows about it, it inserts that one.