"As I peeked through the hole, I saw the cache."
With the participial phrase rearranged in the sentence above, we encounter a ridiculous phrase: "I saw the cache peeking through the hole." With the participle now attached to the object, it sounds like the cache, rather than I, was doing the the peeking.
And you know, sometimes I do feel like the cache is sitting there peeking at me...and laughing at me.
But not on this one...it's too quick and easy.