Hydrolysis of epoxide
I would go with your approach but your final product is unstable due to high repulsion's by $\pi$ electrons.  



Hence your final product will react further to form a more thermodynamically feasible product.



NOTES:
In second structure two anti-periplanar migrations are possible and the one which leads to the more stable carbonation is favored (or consider the better migrating group based on electronegativity). Third structure rotates about spiral carbon due to repulsion's.