Simplifier ticks exhausted on Ω lambda term

GHC panics when trying to compile the following program:

module Omega where

newtype Mu a = Roll { unRoll :: Mu a -> a }

omega = (\h -> h $ Roll h) (\x -> unRoll x $ x)

However, GHC has no complaints about interpreting the module.

---

I've attached the most verbose output of GHC, should you so need it.