I don't think it prevents cavitation of the pump as such because its only on certain functions, i can't remember if it was lift or tilt. The aux does not have a valve as far as I'm aware. And its only one direction. I believe it works by lowering the velocity of the oil by creating a restriction.
This is just my thoughts, nothing to back it up but i think its on the side that has pressure on it most of the time. Like when you lift a load, there is pressure on it to hold it there, but when you tilt or drop the arms fluid will return to the tank at high speed as it has a load essentially pushing it back along with the fresh oil pushing the other side of the cylinder.
As most know, cavitation is a BAD thing. It causes tiny air bubbles in the oil, you would normally think thats ok but under high pressure the bubbles implode creating a high pressure point that can pit steel surfaces.
See the point in the middle? that acts like a hammer smashing into the surface of whatever the fluid is in be it a cylinder, pump or motor. Multiply that by thousands or millions of bubbles over time.
This is what i have read, i have nothing to back ANY of this up. I'd like to know if anyone else has heard other things. Always ready to learn new things!