Using too much of Hotspot hurts the iPad?
Should I stop doing that?


The only reason you may want to stop is to avoid going over your cellular data limit (if any).


  Will it hurt my iPad?


No, this wont "hurt" your iPad, however it's a process that requires the iPad to work a bit harder than normal, meaning you can expect these while you are using the hotspot:


Shorter battery life for the iPad
Slower Performance on the iPad
Slower internet speeds than usual for all devices