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Water is not supposed to come out through the air bleeder valve except when you're bleeding air out of the system. Probably air was getting in through that valve, an air bubble in the coolant lines will stop coolant from circulating. Now you've re-routed the hoses so air can't get in, so no more overheating.
My advice is put it back like it was, but with a new bleeder valve that seals up good. The radiator cap is a pressure relief valve, if you get too much pressure it lets coolant go into the overflow tank, and lets the system suck that water back in when it cools. The way you've got it now, that pressure's got nowhere to go, other than bust a coolant hose.
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