As far as I know, based on my insider knowledge of Hebrew and my readings about English - the process of the CREATION of new words is simple - they are just created by many ways, adoption from other languages (Beelzebub for example comes from Hebrew- בעל זבוב to those who can read Hebrew), they can be simply errors or they can be a compounding of two words, just like in our case here! (There are more, Google "how words are created"!).
Our question is actually essentially not how words are created but how are they added to the dictionaries, and well - according to Merriam webster (the site I personally use as a dictionary by the way) - the reason they are added is simply that they are used - if a word is integrated into every day conversations - it will, in the end, be considered a legitimate dictionary word and it will be added. (In Israel- there is an academy for the Hebrew language, they are deciding what is to become formal and they have meetings for the consideration of the acceptance of new words regularly !)

So - you can use "everytime every time - it's not really wrong - and if you'll make enough people to use it too, who knows - you might just make that red line to disappear :)