Can too much sodium ruin your diet?

I've never watched my sodium intake as I've never had high blood pressure. I'm sure before starting this I ate a lot more sodium than I do now, but even still i'm apparently eating over 1000 over my daily budget budget MFP suggested. I'm below my calorie budget but I've read about water retention, but even with that, with fat loss it should still trend downward right? Or am I wrong?

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