The magnet inside the ping pong room slides on a low friction surface while the outer magnet slides through a higher friction (viscous) fluid. The easiest path for the heat to flow is to a conductive metal heat sink. An opposite reaction must occur: the ping pong balls slow down.
The honey can be diluted with water if it is too viscous. In order for the system to work the honey must not be too rigid otherwise the ping pong balls will just bounce off perfectly without exchanging energy (no brake effect). The question is can this be applied at the nano scale to violate the 2nd law? The ping pong ball thought experiment is useful to imagine how the system would work macroscopicly.