I know there must be several versions of what I call an invisible short row out there, but since I am currently working on a sweater I can't quite show you yet, and the blog is just sitting here, I thought I'd pop my head up and share this technique with you.
I don't like the look of a wrapped stitch in standard short rows, even when you pick up the wrap and knit it together with the wrapped stitch itself. There's still that tell tale slanted yarn there, ever so slightly untidy especially if it is in a sea of stockinette, where any irregularity calls immediate attention to itself.
Here's what my short row stitch looks like.
See it? Kinda?
My method for an invisible short row is ever so slightly fiddly, and maybe not for you, or maybe it's more like the way that you've been knitting it all along and so what's the big deal? Regardless, here's how I would tell you to do it.
Wrap and turn as usual. When you come back to knit it up, stop so that your next stitch to work is the wrapped stitch. Using whatever tool you are comfortable with, be it a cable needle or the working needle, lift the wrap off of the wrapped stitch.
Move your stitches around, and place the wrap yarn on the left needle so that when you work the stitch "perviously known as the wrapped stitch", the wrap yarn is behind that stitch (Please disregard the fact that my stitches are all sitting the wrong way around on my needles. I am a combination knitter, so my knit stitches sit that way. I told you I was just showing you how I do this. If you want to try it, make it work for you however you are comfortable. I should probably tell you that I normally do this without a cable needle, but I'm crazy lazy like that).
When you knit those stitches together, the wrap will end up behind the perviously wrapped stitch, every bit as knitted and secure as if it were still hugging the wrapped stitch around its legs. But no one will know it's even there. Not even you for the most part, so if you have to remember where it is, you might want to put a ring marker in there so you can find it.
Here's the same thing from the purl side of the fabric.
Work up to the wrapped stitch, separate them,
and purl them together so that the wrap sits behind the previously wrapped stitch.
Try if you like, and tell me what you think. Now go knit something.