Some burn their TP; some have set the forest on fire doing that. All it takes is a sudden gust of wind to blow the burning TP out of the hole into dry grass or needles. Never do this when the fire danger is high!

Note that animals often dig up the waste for the food particles it contains. When they do that, the TP gets scattered around the landscape. One thing which may help is to take water to the cathole with you, pour some in afterwards and stir the waste and TP with a stick to make a "soup" before covering up the hole. This helps to dissolve the paper.

Or you can pack out your TP, which is what I do and what the rangers prefer you do. I have medical conditions which require the use of TP (actually, I use pieces of paper towel, which are more absorbent) and moist towlettes. After a trip to Turkey, where they have a small hose attached to the toilet to clean up, I tried the squirt bottle method a couple of times. It works fine on a real toilet, but in the backcountry it runs down my legs and into my pants (aargh).