The problem occurs because the exhaust valve is now on the "top" and some water will leak past it as the air bubbles out. The water then collects in the "bottom" of the upside down reg where it easily runs or is blown into the mouthpiece during inhalation.
This is not an issue when the reg is right side up, as gravity prevents much water from coming up through the valve and any water thyat does enter falls to the bottom of the case where it goes back out the valve during the exhalation or at worst during the next exhalation.
With a side exhaust reg like the Poseiden, Oceanic Omega or Dacor Viper, breathing upside down is not a problem as things are located in esentially the same positrion they are in when right side up. However if you roll 90 degrees onto your right side, they will be prone to breathe wet as the side exhaust valve is now on the top.