From the wallpaper problem solver - quick reference guide
There are three major reasons why joins peak:
The paper was not soaked or relaxed long enough before hanging.
The paper being stretched during the hanging process.
Seams pushed too close together during hanging.

How to fix peaking joins when wallpapering
If the seams peak during installation, remove the strip and wait for the product to fully relax and expand before continuing.
This may be caused by one of two possible reasons:
The more moisture present during installation, the longer it takes for the wallcovering to set up or start the drying process following the application.
Generally the seams of wallcoverings are not overlapped except in special situations such as corner areas. This is because most corners are not built perfectly square. The wallcovering should be cut at the corner area in order to realign the strip properly on the adjoining wall. In such cases, the seam in a corner will be overlapped.