I think it can. I was mis-diagnosed at first as type 2 (with a BG of 29). I started on oral meds, which were gradually increased until I got a good level of control (NO INSULIN). After a few month I had to drastically reduce the dose of the oral meds, almost completely stopping, because I was going hypo. After a year and half and the end of the honeymoon, things declined rapidly and I moved onto the basal bolus insulin regime. I was told that medication (insulin or oral meds) and diet improvements can take some of the stress off an overworking pancreas and prolong the life of your failing pancreas and improve BG control, for a short time anyway, until your pancreas function declines. I have also heard people saying that the pancreas can function erratically in the honeymoon period resulting in yo-yo blood sugars.
Things settle down for most people, you just have to hang on in there and react to swings. I personally find diabetes control like shifting sands. Best of luck.