I, too, am doing short rows in the round and am experiencing the same problem as Amitchell98. Thanks to Cat Bordhi and sock heels, I have done lots of her short-rows in my knitting life, but none - apparently - in the round. I can pick up stitches going knitwise and get no gaps (as Amitchell98 says), and pick up stitches going purlwise with no gaps. But when I’m working in the round and come to a wrapped stitch that I would ordinarily handle on the purl side… well… I’m knitting in the round so when I come upon the stitch that’s wrapped that I’d normally purl, the wrap seems to be be on the wrong stitch.
Let’s see… how to better explain… when knitting in the round from left needle onto right needle, when you come to a stitch that you wrapped from the knit side, you’ll see the wrapped stitch, the wrap at its base, then an unwrapped stitch.
When knitting in the round and come to a stitch that you wrapped from the purl side (because you did a W&T on the knit side, so you’ve wrapped on the purl side), you’ll come to an unwrapped stitch, the wrap at the base of its stitch, then the wrapped stitch.
If I lift the wrap and knit it with its stitch, I still get a hole between the unwrapped stitch and the new stitch. If I lift the wrap and try to knit it with the unwrapped stitch, it elongates the wrap and looks sillier than the gap. (I was trying to figure out a new way to close the gap).
I can’t think of anything else to do to eliminate that gap, except maybe just yank the heck out of the yarn when knitting the stitch with its wrap? Using a needle 2 sizes too small when knitting that stitch? Any other suggestions I (we) can try?