This glitch happened in a Minecraft server, so I went into a creative world to find out if this was a real glitch.  I spawned a sheep outside a pool of water, and when I completely go underwater and look at the sheep, it looks like it is sheared (I can't see the wool on the sheep).  When the sheep goes underwater, the same thing happens.  Here's the interesting thing:  when both the sheep and I are underwater, I can see the wool on the sheep just fine.  However, this doesn't happen with baby sheep (to my knowledge).  It isn't a severe glitch that affected my gameplay, but I found it a bit distracting.  Note:  My computer does not support screenshots and I am unable to attach a file of what is happening.  Hopefully the Minecraft Team can look into it.

Thanks!