Sure, it can leak past the inner diameter of the seal in the clutch cover, into the engine. Virtually no oil pressure on the other side of the seal. When you squeeze the clutch the fluid can seep past the clutch lifter rod, into the rear case.
My clutch cover was quite corroded when I opened it, as was a bonus clutch cover that showed up in an eBay grab-bag purchase. The lifter rod wasn't great, either. The seal was starting to distort from the force of the expanding corrosion products, too.
I cleaned up the lifter rod and swapped ends when I put it back. I plan to bleed it tomorrow; if something goes wrong I'll post the results.
I'm the third owner of the bike, but I'm not sure what the previous owners - or their shops - did for preventative maintenance. I'll be diligent about annual fluid flushes from now on. I plan on riding it to the moon!

