I'll look back and see if I can find an old thread of mine probably about 6 years old where I asked the same question and I believe it was Mojo who said that it wouldn't be considered a closed loop and that it wasn't too good of an idea. Let me double check though. One potential problem I can see with it is you are relying on an overflow for your sump drain and to feed your "closed loop" so you will have to make sure your sump drain and your "closed loop" pump doesn't exceed what your overflow can handle. Also, you will have to make sure the water level in the tank doesn't drop too low as it will effect the overflow flow flow rate which could be another problem. I did a false wall in a 10 gal tank where I had water drain over the DIY overflow into a compartment where I had some maxijets in there to return flow back into the tank through some lockline. When I water tested it, I almost drained the compartment as the pumps were too much for the overflow to handle. To fix it I had to extend the length of the teeth for the overflow so that it could handle more flow. This fixed the problem, but I was left with an issue that I had to make sure the water level didn't drop too much. If it did, then the pumps would exceed what the overflow could handle and I'd end up right back to where I was with too much flow for the overflow to handle so this is where you have to be careful. Almost similar to how an all-in-one nano is. The have the return pump sitting in the back compartment where it gets water from the tank the overflow that drains back there. The pump is too big or water level drops too low and you have a problem. If you notice when people do closed loops, their suction is usually drilled low in the tank.
Anyways, let me look for that link real quick.