No, the "Hide Rest If Fail" feature just suppresses the display of subsequent cases to the student. The rest still get run, and are displayed to staff (shaded darker).
If you want a "lazy evaluation" mode you have to implement it yourself with a template grader. For non-combinator graders you can set the abort attribute of the returned JSON record (see http://coderunner.org.nz/mod/book/view.php?id=193&chapterid=738). With a combinator grader you can return as many or as few test results as you like, so you simply stop testing on the first failing case.