Was hiding in this place, however (7)
I believe the answer is:
whereas
'however' is the definition.
('whereas' means 'however' or 'on the other hand')
'was hiding in this place' is the wordplay.
'hiding' indicates putting letters inside.
'in this place' becomes 'here' (synonyms).
'was' going around 'here' is 'WHEREAS'.
(Other definitions for whereas that I've seen before include "In contrast with the fact that" , "But on the contrary" , "Considering that" , "On the other hand" .)