The Magnefine DOES have a pressure bypass valve.
It is located on the other end of the filter media cartidge in the "take apart" picture of the Magnefine filter.
When adding a Magnefine filter (a very nice upgrade) to your vehicle, use care to avoid sharp bends in the line and avoid "rub" points against sharp or hot (exhaust) parts.
You can put a hose cover over places that are near a sharp place.
You can also use zip ties as needed to fasten the hose in place.
Also check now and then to make sure that it is not rubbing a hole or dangling down where it can catch on something.
From what I have read, the "ideal" location is in the cooler line that is flowing fluid FROM the cooler TO the transmission on a vehilce that is not near new (more than a few thousand miles).
However, the other line is STILL a major improvement over not having it.
For this reason, location may be determined by how things are laid out for your particular vehicle.
It IS important to know which line you are using as you need to know the fluid flow direction.......as you MUST have the fluid flow match the big flow direction arrow on the side of the filter in order to have the bypass valve work......and have the filter media properly supported.