SOLUTION:

As the balloon lost altitude, all of the thieves took off their clothes in order to decrease the overall weight. but when balloon continues to lose the attitude they decide one of them need to jump to the desert to decrease the weight.
The man who must jump is decided by the famous death game where one who picks the shortest toothpick must die.
Frank Catton pick the half toothpick and was already naked and hence the hence explain his state in the desert.

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