There may be a valve built into the bypass filter adapter. Some have a valve that prevents oil going through the filter until a certain pressure, usually 20-30 psi, is reached. That could be built into the oil pump, but I don't think so on an SBC. Pressure is reduced after passing through the filter, so the pressure requirement makes sense. As noted, some have the opposite -- a relief valve to prevent to much pressure from entering (and possibly rupturing) the filter. Check manufacturers specs on yours to see how it's made. Filters have an anti-drainback valve, and some have a high pressure valve built in. You might have a bad filter. Did you pre-fill the filter before screwing it on? Try that, and a different filter.
Most adapters have a circular channel for the oil entering/leaving, there should be no holes to line up.