Hi Vivek
Yes, the finderscope is almost always used at night to line the scope up to what you want to look at first. That's why it's important to ensure your finderscope is aligned with the EP view.
As for getting too close to the eyepiece and losing focus? Was the image focused? The typical viewing distance of your eye is about 3-8mm from the eyepiece lens, depending on the eye relief of the eyepiece. How close was your eye?
Did you turn the focuser knobs to focus it?
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