Ultra-high-speed spindle bearings challenge traditional vibration monitoring due to broadband noise, non-stationarity, and limited time-frequency resolution. We present a fast Short-Time Root-MUSIC (fSTrM) algorithm that exploits FFT-accelerated Lanczos bidiagonalization to reduce computational complexity from $\mathcal{O}(N^3)$ to $SN\log_2N+S^2(N+S)+M^2(N+M)$ while preserving parametric super-resolution. The method constructs Hankel matrices from 16 ms signal frames and extracts fault frequencies through polynomial rooting on the unit circle. Experimental validation on the Politecnico di Torino bearing dataset demonstrates breakthrough micro-defect detection capabilities. The algorithm reliably identifies 150 $μ$m defects -- previously undetectable by conventional methods -- providing 72+ hours additional warning time. Compared to STFT and wavelet methods, fSTrM achieves 1.2 Hz frequency resolution (vs. 12.5 Hz), 93\% detection rate at $-$5 dB SNR, and quantifies defect severity through harmonic content analysis. Critically, the algorithm processes each frame in 2.4 ms on embedded ARM Cortex-M7 hardware, enabling real-time deployment. This advancement transforms bearing monitoring from failure prevention to continuous degradation assessment, establishing a new paradigm for predictive maintenance in aerospace and precision machining.