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Sarcopenia, age-related muscle loss, and fascia immobility play significant roles in the development of loose skin underneath the arms. The podcast highlights that focusing solely on weight loss through diet and cardio may not address the core issue. It emphasizes that the fascia, a tissue surrounding muscles, contracts with immobility and aging, contributing to the deterioration of arm shape. In contrast to traditional isolated muscle workouts, the recommendation is functional exercises involving multiple muscle groups to target the dynamic nature of fascia.