Parts of speech or participial construction (insertion of "palm face up")
People don’t usually think of touch as a temporal phenomenon, but it is every bit as time-based as it is spatial. You can carry out an experiment to see for yourself. Ask a friend to cup his hand, palm face up, and close his eyes. Place a small ordinary object in his palm ― a ring, an eraser, anything will do ― and ask him to identify it without moving any part of his hand.
One idea: palm face(two word noun) + being(present participle) + up => palm face (being) up
Another idea: palm(noun) + face up(adverb) => palm face up = with his palm faced up
Research
Adverb face-up (not comparable)
In a position with the face upwards. The cards must be dealt faceup(sic)
https://en.wiktionary.org/wiki/face-up
Solution 1:
The correct understanding is palm face up.