7.c3 seems to win material (7...Ne6 8.Qxd5)
Lolli attack Nxd4!? > fxd4
Why would black play 5. ... Nxd5 in the first place. It is a serious blunder and black should lose after it.

7.c3 b5 8.Bxd5 (8.Bd3 h6! 9.Qh5 hg5 10.Qxh8 e4 is messy, and at best slightly better for white) Qxd5 9.f3! c5 10.0-0 when Black has some compensation for the piece he is about to lose, but not quite enough. Actually this seems to be the only playable variation for Black in the Lolli.
And... no, 5...Nxd5 does not lose, and 6.Nxf7?! is an inferior move.

alot of people are sugjusting the fried liver, but the lolli offence has statistically a greater win rate than the fried liver, atleast thats what i have been told.
So the typical lolli attack goes
how should white respond to black playing Nxd4?