Tor-Helge Skei has introduced fx_cutter, a freeware loop mangling utility in 32-bit VST plugin format for Windows based host applications. Here's what he has to say about it,

Audio is continually recorded into a buffer (length is 'beats', each slice subdivided into 'slices'), and randomly ('cut prob'), a few slices will be selected ('max cut'), and subdivided ('max loop'), and then this small bit is looped for the duration of the outer selection, the longer bit (the 'max cut' part).. and each time this loop wraps around, it can possibly halve ('slowdown') or double ('speedup') its playback speed, or halve ('halve') or double (yes, 'double') the size of the looped bit. it is pretty uncontrollable and unrepeatable with all the probibilities, so i usually run a track several times through this, and cut out the good parts.

Pricing and Availability:
Free

More information:

fx_cutter