When faults happen in a power transformer, a variety of small-molecular gases will generate and dissolve in transformer oil. Therefore, dissolved gas analysis is one of the important methods to monitor the operating status of transformers. This paper proposes an optical acetylene sensing method based on hollow core photonic crystal fiber (HC-PCF) and fiber loop ringdown spectroscopy (FLRDS). Focused ion beam technique is used to complete the processing of micro-sized channels along a HC-PCF. It takes about 11 min to fully fill the entire length of a 0.83 m HC-PCF with acetylene. Furthermore, the FLRDS system based on the dual-wavelength method achieves a minimum detection limit of 0.71 ppm. This detection system improves detection stability and provides a new idea for online monitoring of dissolved gases in transformer oil.