Exploit or not

[Metathron]

As we know, if you are caught by an enemy army and you have no troops (or have them and run away) you are sent back to King Frederick and are given a fresh batch of starting troops and 100 gold. These troops are very very weak of course, but I've been wondering since a mage gets sprites...errr, forest fairies, could Amelie potentially keep using this run away / no troops exploit to accumulate a large supply of fairies? Or does the game cut you off after a certain point with a game over screen?