I think what you're doing is working one less stitch each time you work the short row on the side of the poncho. First time is 12, wrap and turn, the next time will be 11, wrap and turn, etc.
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Quote:
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next row (RS) Center neck row work across all sts (note: this should be cross row for 4st cable and bobble row for zigzag pattern) ((this has lost me))
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--This part I believe is a reference that this is where you should be in the pattern at this point.
As you do the short rows, they just want you to continue in the pattern as it's been established, not reverse anything.