Things that make me go, "hunh"

A tradesman came to the house recently to quote some work. It was just as the school year here was closing, so he had a grandson in tow.

In the course of introductions, the Latino grandfather told me the boy's name was "Shehadi." He said it with, it seemed to me, some minor embarrassment.

Did Grandpa understand that this boy's name literally means Muslim confession of faith, and figuratively means 'martyr'? Is there a trend among Latino women to make names up from thin air or overheard phonemes on broadcast media?