On paper? It would. From conservation of (angular) momentum, it'd be a cloud of slower-moving (spinning) particles colliding with the walls of the chamber. From conservation of energy, it'd dissipate in a plethora of ways, but IMO mostly increase in temperature. Depending on the amount of energy to dissipate, if it were made from carbon like in your example, you might end up with friction lightning creating stuff like buckyballs, but mostly chain (=C=C=C=) or cyclic (same, but connect beginning with end) allotropes. Now, if you're asking if this is at all practical or doable...Now... hear me out here... if the throwing arm in the SpinLaunch design is DESIGNED to explode into a cloud of graphite threads immediately upon release of the projectile.... does that burn off the energy left in the system after the projectile exits the building? Could that be a design feature to address some of the issues left behind once the launch happens?