Layer 1 Loop test over MPLS

I was asked lately if it is possible to run a layer one loop test on a T1 through an MPLS cloud. My answer was that it does not matter. MPLS is at a different layer. I was told that this is different. When you send a loop code, when testing a T1 with ESF, it is not possible.
Here we have two sites having point to point connection (Pure layer 1 ) and going through an MPLS cloud.

Hi,
OK! I am going to try to be clear about this.
It is not really an issue. This was a discussion that took place about a two sites (A and B) that are connected in a point-to-point with a T1.
Now this connection is being moved to an MPLS cloud.
The tech was asking, in the case he wants to run a loop test at the physical layer. How should he proceed? I told him that he has now two local loops, he needs to test both separately. He replied that he wants to test all the way through the MPLS cloud to reach the remote site. He said that when sending a loop code with ESF, the PE strips the ESF part from the loop code and label only the payload (which is not clear to me).
Imagine you have a test device connected to the Demarc A and you are testing the link up to Demarc B. Can you run the loop test across the MPLS cloud?

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