Well, yeah, but it's the the Free Memory app that's doing that. It's the iPhone OS, when the memory warning is called.
When you press the button, free memory will start to allocate lots of junk data, until a memory warning happens, and all that memory is released, and the iPhone OS reacts and stops apps too, so that the free memory app can continue to run.
So, every other program will give the same warning, and cause the iPhone OS to do the same thing. It happens when the system needs it. Using this free memory app causes it to happen when the system does not need that memory.
As to listing the processes, there is one C command that gives you the running processes. Really, this app should not have taken more than twenty minutes to develop, and it serves no real purpose.