Just did that with the Cummins in my Dodge truck. Pushed it too hard up too many steep grades in a row, and it blew all the coolant out. I pulled over as soon as I heard it start to knock, let it cool down, added water, and it started right up. But, there was a bad knock coming from #5 or #6. Melted piston. As soon as I had a chance, I pulled the cooling system thermostat out and threw it over my shoulder. I think it was leaking around the water pump gasket (just a rubber O-ring). Or, the thermostat might have not been opening. I tested it in a pot of boiling water, and the passage rate (low) was no different at boiling temp than it was when cool. Also replaced the water pump, for good measure, and got it sealed properly by cleaning up the mounting surface with a wire wheel. I've driven the truck more than 1000 miles since then, but I realize I'm on borrowed time.
Now, it knocks something fierce when I start it up, but after the engine is warm, the knock becomes much quieter. Of course, without the thermostat it takes 1/2 hour of run-time to warm up. Doesn't seem to lack much power...And, it will run all day without getting hot, as long as I keep coolant in it!
Not to worry, I have a line on a couple of used short blocks, each for $2000. The engine I just killed was bought 9 years ago, out of the mud at a junkyard, for $1500. Knew nothing about its past history. That was at least 100,000 miles ago...
-Paul
PS, I used to drive Chrysler flathead-powered vehicles. When replacing the thermostat, I always added a couple of bypass holes to it with a 1/4" drill bit. Just for safety.