you have to be a secret agent and go to the HQ

lol i do that but other agents can find you! go to the ski lodge
go to the attic
usher yourself into the boxes.
the only slight visible thing is your name

another great one is...
go to the puffle shop
hide in the puffle houses.

im an agent and i still see the word hiding when i locate ppl

or now, you can become a ninja and hide in the ninja hideout. a new hiding place is in the
stage. you gotta find it yourself. want my help? ok when u go on the top seats there is a
bit where u dont see the penguin walking up. stop there and ur hidden

to Coke1201;
U see the word hiding if the penguin is in the ninja hideout or the HQ or the Command Room