Forward and reverse limit not working as expected in close loop count position

I'm using an SDC2160 as a servo controller in closed loop count position mode, using an incremental encoder for feedback. I have the forward and reverse limits configured to trigger at +-x counts.

This works fine in open loop control, with the motor stopping when these limits are hit, but still able to move away in the opposite direction.

However, in closed loop count position mode, once either of these limits are triggered my motor will refuse to move in either direction.

Is this intended behaviour? If so why?