I called my lfs to see what he thought. He said that he used to own a seahorse farm and that this happens all the time to males. Unfortunately, It usually cause serious infections on the male and all the babies die. He recommended that I assist in the birth. I captured the male and gently pulled out the baby. It was still alive and now it is feeding on baby brine. Yeaaahhhh.
This is the baby feeding on the top. He is about 1/4 inch.