It can - generally caused by a bacterial bloom (from all the unaccustomed abundance of food for them). This can be a real problem because these blooms have been known to use up all the free oxygen in the water and thus severely stress or kill off larger organisms - which, compared to bacteria, is pretty much everything in your tank. If you're seeing this, you're more than likely overdosing.
If you have an air pump & air stone, it wouldn't hurt to set that up and aerate your tank and/or sump until the cloudiness clears - get more oxygen back in the water to replace what the bloom is consuming. It may not be necessary, but then again it may, and regardless it's unlikely to hurt anything. Then back off your dose to the level before you started seeing cloudiness and once you're stable there, slowly increase your dosing level.