Can overuse of eye drops actually hinder, rather than help dry eye?

I have really bad dry eye in my right eye for some reason- its at its worst when i wake up- feels like my eye is full of sand, and totally bloodshot- I'll drop some 'Refresh Liquigel' lubricant eyedrops in my eye- that will really help, and the bloodshotness will fade..But in a few hours my eye feels dry again, so I add more drops- Now my lower eyelide keeps twitching on its own..If I keep using the drops- is it possible it may hinder my natural eye lubricant production?
Whats the best way to tackle serve dry eye in one eye?
What are the side effects of overuse of these drops?
My other eye is fine, and my vision is fine.but if my dry eye gets too dry, my vision in that eye may seem out of focus.but once I add lube, it comes back into focus...

I wish I knew what was wrong

You should see a doctor if your eyes are getting that dry and you don't know why. (Are you on accutane--I had that problem when I used it.) You'll probably want to use something like saline (used for contact lenses--basically tears in a bottle) for some of your moisturizing.

If a doctor gave you an intense drug you think is drying you out, call him or see him about this side effect and get his advice. If you don't think a drug is causing it, see an eye doctor to find out why you aren't making enough tears in that eye--it could be a blocked duct or something.

I don't know about Refresh particularly, but many drugs almost reverse their effects when they are overused. Substitute saline (drug-free moisture) for some of your eye-drop sessions and it will probably help. But do see a doctor--the one-eye only part of your question makes me think there is something really wrong (but probably relatively minor to fix)with the eye.