What you are seeing is an artifact of the way trying to symbolicate a stack from a stripped binary works.
Like most release binaries, Flash is stripped, meaning you don't have any symbol information about the vast majority of the binary. The NP_Initialize symbol, however, has to be exported in order for the plugin to be loaded, so it's one of the few symbols that's present in the binary. The debugger UI is designed for unstripped binaries, and works by looking backward from the actual address to the first function name it can find. In many cases in a release Flash binary, that will be NP_Initialize no matter what the address.
So there's no recursive call, and when it says "NP_Initialize" you should just read that as you would a random hex address: "Some function that I have no idea what it is".