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You didn't really explain why the referee wanted you to pick up your flag so it's tough to say too much.
Think of it this way - you pick up your flag after every call. You flag it, report it to the referee and then, after enforcement, pick up your flag and move on.
In these cases, you called it, he declined to enforce it but you still pick up your flag and move on. If a coach asks what happened, i would tell him that he needs to talk to the referee and leave it at that.
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