If the studies I looked at are indicative, the mechanism is actual fat cell death (at least in one of teh animal studies that's what was going on).
It's not lipolysis in the sense that you're asking about it. The cells die, get cleaved off and hopefully dealt with without causing a massive autoimmune reaction. But you don't have to burn them off after treatment relaly.
A study that came out Sunday on this said that it should only be used for small fat depots. someone is either going to die or get lupus if folks start using this for big fat deposits.