It sounds like the double shootout on Stars. You get seated at a table of X number of players. The object is to be the winner of that table. Then you move onto the final table. For example, you could have 50 entries in the tourney. You would then have 5 tables of 10 players each. There is no moving of players to the table to fill empty seats. After play is done at those tables you have a final table of 5 players.
A freezeout is just a way of saying there are no rebuys.