A 2nd stage freeflows when the mouthpiece is up because there is pressure on the diaphram at the front.
What you are probably missing is a basic understanding of how a 2nd stage regulator works. There is a big rubber diaphram in the front of the regulator. It is attached by a lever to a small valve and valve seat. When you suck on the regulator to get some air, that suction pulls in the diaphram, which opens up the valve and delivers the air. Putting the diaphram face down while the mouthpiece is out of the water (or if the reg is full of air) puts the same sort of pressure on the diaphram and causes the reg to deliver air. BTW, the purge button of a regulator is nothing more than a way to manually push in the diaphram.
You can avoid freeflow by adjusting the regulator so that you have to suck harder to get the air. This is normally done with the octopus regulators, and that's why they don't freeflow when out of your mouth. But this means that you have to suck harder to start the air flow. Some regulators have an "cracking pressure adjustment" knob that sets how hard you have to suck on the reg to start the air flow.
There is another adjustment on many regulators call "venturi". To make breathing easier, the air that comes out of the regulator is directed against a little plate that tends to pull in the diaphram some more. (Or it can be done with a shaped passages and the venturi effect, but it has the same effect as if air were hitting a little plate that pulls on the diaphram.) Often this venturi effect can be switched on and off with an adjustment that is marked "surface/dive" or "+/-".
Does this answer your question? Or just confuse you more?
Charlie Allen