I wouldn't recommend doing this regularly.
Most ER collet manufacturers will typically recommend clamping a shank that is at least 2/3rds of the collet length. In the case of an ER32, the total length is 1.58", so clamping only 0.625" = 40%. If you overtighten the collet nut, the collet could split.
You may be able to do this occasionally to get you out of a bind, but it really isn't ideal and will eventually cause damage to the collets.