Packing peanuts moving do not conclusively prove it was the psychic using their breath. Packing peanuts are little bundles of static electricity.
There was an even better expose of the same 'breather' that proved definitively that he was ricocheting air through his hands.There were two investigators who invited the psychic to participate in an experiment. There was also a hidden camera as well.
The psychic did a one up on the phone directory thing and decided to his thing on a dollar bill that was standing on a pin below (Made it easy to twirl around). It was to be covered by a small upside down fishbowl on top of a table.
They were really curious since that would have been an enormous feat but they still knew it had to be his breath. They were going to put directional microphones to pick up on the sound of any breathing. The psychic refused. So they went ahead and he did his hand thing and the bill twirled around inside the upside down fishbowl.
After the investigators saw that they took him out of the room temporarily and then snuck in and turned the fishbowl around. They realized that small simple fishbowls like the one used would be uneven at the top. That would create a thin air gap on one side that in theory could allow some of the breath to come in. By switching to the side of the glass that had no air gap they would make it impossible for him to extend his hands sufficiently to deflect the air stream.
The psychic came back into the room, began his performance, and failed. He said in exclamation that "there was something wrong". Upon saying that he kicked the table in anger. Case closed. Real Skeptics never give up.