That can't be right because: Say a MM has 6MM n

That can't be right because:

Say a MM has 6MM naked shorts on a specific stock.
That stock declares a $2 dividend.
There are now $12MM worth of dividends above and beyond issued stock that have to be put in the buyers accounts and that money has to come from somewhere. If there are 40MM shares, that is $80MM the issuing company is putting up for dividends and where is the additional $12MM coming from?

The system has to have a way to know who issued what shares and those MMs who issued the non-existent shares would be on the hook for the missing $12MM. Now the MMs aren't going to eat it so they most likely would sell some real shares that the hedge funds who bought the naked shorts actually do own to reach the $12MM owed to the naked short share buyers. If the hedge funds say they didn't ask for naked shorts, then the MM is on the hook and the $12MM is just their cost of doing business.

Would like to get a good explanation from a professional in this field.

As to monthy interest on naked short shares, I am sure the MM is billing the short share sellers as that is their profit from doing business.