Short Answer: Flat part/side (or what I would call the *fold part/side*) up.
Long Answer: Flat side and/or *fold side* up for a wallet that folds at a single point in the center of the material. This type of wallet is called a "bi-fold" and is probably the most common representation of a wallet.
My preference is the "tri-fold", which folds at two points, sectioning the wallet into thirds. The only way you could put this in your pocket "incorrectly" is by trying to squeeze it in horizontally or I guess if your pants have extra large pockets...XD
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