Woke up in the middle of the night to my arm completely numb (happens a lot as i sleep in odd positions). next evening, my arm was sore feeling. can it cause damage when it "falls asleep" in the night?

Sometimes: What you describe is nerve compression perhaps related to odd sleeping position. The brain will generally make you move in order to relieve compression and therefore spare permanent damage. Sometimes those who are intoxicated or otherwise impaired may not have enough sense to relieve pressure and cause longer lasting or even permanent damage.