Media Upload Directory to MMYY instead of YYYY/MM

/** Force wp_upload_dir() to use time-based paths. */
add_filter( 'pre_option_uploads_use_yearmonth_folders', '__return_true' );

/**
 * Use the date format MMYY instead of YYYY/MM in the uploads path.
 *
 * @param  array $dir
 * @return array
 */
function wpse_104005_upload_dir( $dir ) {
    if ( preg_match( '!/([0-9]{4})/([0-9]{2})!', $dir['subdir'] ) ) { // Check we do indeed have a date-based subdir
        $dir['subdir'] = "https://wordpress.stackexchange.com/" .  substr( $dir['subdir'], 6, 2 ) . substr( $dir['subdir'], 3, 2 );
        $dir['path'] = $dir['basedir'] . $dir['subdir'];
        $dir['url'] = $dir['baseurl'] . $dir['subdir'];
    }

    return $dir;
}

add_filter( 'upload_dir', 'wpse_104005_upload_dir', 100 );

It’s a little frustrating that the filter upload_dir doesn’t pass along the $time variable too, hence resorting to regex on the subdir.

Update: In regards to your problem, load wp-admin/options.php in the browser, then make sure the following values are:

    upload_path: news
upload_url_path: http://domain.com/news

If that still fails, try using the full path in upload_path (usually something like /user/public_html/news, use phpinfo() if not sure).