For those of you not familiar with the bi-pass valve, it may be a little confusing if you don't know the travel of the "lever".
The two photos below show the valve (lever) in the open and closed position.

Bi-pass closed (lever is down). It should be in this position when the car is not running or when under boost.! If it is in this position with the car running (at idle). Something is WRONG.

Bi-pass is open (lever is up). Start the car and the lever should be in this position (engine idling). (Vacuum is sucking the valve up and opening the butterfly). With the car running the lever MUST be in this position. 

Look in the red circles and note how the lever is located relative to the square block with the hole in it. The black line is merely to be used as a reference, it is lined up on the "lever" in both cases.