Recursivity needed if a fork is a fork of a fork.

app/models/lfs_object.rb

@@ -8,7 +8,7 @@ class LfsObject < ActiveRecord::Base
   def storage_project(project)
     if project && project.forked?
-      project.forked_from_project
+      storage_project(project.forked_from_project)
     else
       project
     end

lib/gitlab/lfs/response.rb

@@ -220,7 +220,7 @@ module Gitlab
       def storage_project(project)
         if project.forked?
-          project.forked_from_project
+          storage_project(project.forked_from_project)
         else
           project
         end