Please, look at the cross. Where is the upper moving bar when the flashed bar appears?
We usually perceive the upper moving bar to the right of the flashed bar but actually both bars are perfectly aligned (you can check it by using the movie controller).
What is causing the illusion?
The light that reaches our eyes should be transformed into neural signal and then travel to different areas of the brain for further processing. This takes time and this time is estimated to be around 0.1 seconds or even more. So, when something happens in the world, we are not instantaneously aware of it. We need some time to see.
What happens for a moving object? Do we see the object in a location that lags 0.1 seconds the real location in the environment? Consider that this is about 10 cm if the object is moving at walking speed (4 km/h).