Luke Graham’s 91st minute header earned struggling Hereford United maximum points and dented Wrexham’s promotion charge.
Chris Todd headed the Bulls into an eighth minute lead and Wrexham continued to huff and puff for the remainder of the half.
However, Stephen Wright opened his Reds account with a wonderful 58th minute overhead kick.
It looked as if Wrexham would go on to win it - Joe Clarke hit the post in the 80th minute and Dean Keates headed over from close range as the hosts created the better chances.
However, Graham came up with the late sucker-punch to deny Wrexham a precious point in their hot pursuit of leaders Newport County.
Sticking with the starting XI that eventually won convincingly in the 4-1 midweek thumping of Southport, boss Morrell would have hoped for a better start than what he got at Haig Avenue.
However, Wrexham were on the back foot as early as the eighth minute. After Reds skipper Keates had cleared a goal-bound header off the line Josh O’Keefe dinked the ball back in where Todd rose highest to nod the ball past a rooted Andy Coughlin for his first goal of the season.
Nick Rushton volleyed wide from 20 yards as Wrexham looked for an immediate response but Bulls goalkeeper James Bittner had little to do as the visitors took their slender lead into the break.
Aware of his poor first half display Morrell subbed himself for Adrian Cieslewicz
and the Pole’s pace soon had the Bulls defence in a flap.
Bittner beat away Rushton’s low drive before Wrexham restored parity just shy of the hour.
Keates’ in-swinging corner hit the inside of the far post, bounced across the face of goal and Stephen Wright produced a magnificent overhead kick that gave Bittner no chance from five yards.
Coughlin then produced a top-drawer save to deny Ryan Bowman as Hereford changed tact from their previous ‘shut up shop’ routine.
With ten minutes left Clarke curled a shot against the post after being played in by Jay Harris before Rob Ogleby replaced Danny Wright.
Keates went agonisingly close with a diving header but there was to be heartbreak for Wrexham.
After Keates had tripped Bulls substitute Brian Smikle in the first of four minutes added time, Sam Clucas lofted the free-kick into the box and Graham’s powerful header sailed into the net.
Wrexham have kept just one clean sheet in their last six league outings - back at Nuneaton in September - and lessons will have to be learned before Gateshead arrive at the Racecourse next Saturday.
Wrexham: Coughlin, S Wright, Ashton, Harris, D Wright (Ogleby, 81), Morrell (Cieslewicz, 46), Keates (cpt), Clarke, Rushton, Westwood, Devine.
Subs: Alfei, Riley, Hunt.
Referee: Darren Handley (Lancs)
Hereford: Bittner, Todd