Kip--they don't mean "set free" when they say "release"; they actually mean "race". All you need to do is race one or more of your little cubis with a bunch of other people such that there are 31 cubis all racing at once.
And you don't have to have 31 people doing it, like we tried in Cebarkul (sorry Sky Waitress for messing up your intended death!!). Things froze up a lot. Later on at Jessenya's house we just released gobs of cubi's (there were only 10-15 people at her house) and it worked just fine for everyone. So race as many as you can until you get the badge. If you don't get it right away, just have everyone keep racing and racing and racing. . .well, you get the point.