1. It is often used as a slang phrase for referring to the time when there is no obligation on the underwriters for selling the securities at the price that was agreed upon initially by the syndicate. It simply means that the underwriter is free and can trade the securities with him/her at its current market price.
The securities allotted to the underwriters during an initial public offering are usually agreed to be marketed at a fixed price. However, due to huge demand of the shares in the market investors are often willing to buy the shares at higher prices. The underwriter cannot sell the shares at higher prices until and unless the syndicate is freed up from the restriction of selling at fixed price even if the demand for the stocks is high.
2. The term freed up can also mean the amount of capital that an investor has available with him/her after closing position on a security. This capital, now available with the investor, can be used for investing in other assets.
For example, if an investor holding shares of a company X decides to close his/her position on the shares and use the capital available from it to invest in some other security then this capital available to him is called Freed Up capital.