With the recent proliferation of Large Language Models (LLMs), there has been an increasing demand for tools to detect machine-generated text. The effective detection of machine-generated text face two pertinent problems: First, they are severely limited in generalizing against real-world scenarios, where machine-generated text is produced by a variety of generators, including but not limited to GPT-4 and Dolly, and spans diverse domains, ranging from academic manuscripts to social media posts. Second, existing detection methodologies treat texts produced by LLMs through a restrictive binary classification lens, neglecting the nuanced diversity of artifacts generated by different LLMs. In this work, we undertake a systematic study on the detection of machine-generated text in real-world scenarios. We first study the effectiveness of state-of-the-art approaches and find that they are severely limited against text produced by diverse generators and domains in the real world. Furthermore, t-SNE visualizations of the embeddings from a pretrained LLM's encoder show that they cannot reliably distinguish between human and machine-generated text. Based on our findings, we introduce a novel system, T5LLMCipher, for detecting machine-generated text using a pretrained T5 encoder combined with LLM embedding sub-clustering to address the text produced by diverse generators and domains in the real world. We evaluate our approach across 9 machine-generated text systems and 9 domains and find that our approach provides state-of-the-art generalization ability, with an average increase in F1 score on machine-generated text of 19.6\% on unseen generators and domains compared to the top performing existing approaches and correctly attributes the generator of text with an accuracy of 93.6\%.