Don't try this at home: These experiments use an ultra-purified version of capsaicin to avoid infection -- and the volunteers are under anesthesia so they don't scream at the initial burn.
How could something searing possibly soothe? Bite a hot pepper, and after the burn your tongue goes numb.
The hope is that bathing surgically exposed nerves in a high enough dose will numb them for weeks, so that patients suffer less pain and require fewer narcotic painkillers as they heal.