Doctors Kwang-il Kwon and Hye Gwang Jeong of Chungnam National University studied the properties of oxygenated alcohol - booze with oxygen bubbles added - which is a popular concoction in their country. In these drinks, oxygen is added the way carbonation is usually added to soda, and the scientists wanted to know if these oxygenated beverages affected people differently than non-oxygenated ones. The answer was a resounding yes.
So why does adding O2 to booze lessen the nasty after effects? When you drink ethanol, you body needs to oxidize it to water and carbon dioxide in order to process it. This occurs via hepatic oxidation, where the liver does its thing to counteract the liquor you've just poured down your gullet. The enzymes that process alcohol require oxygen to function, and it's thought that by storing the oxygen in the alcohol itself, the system functions more quickly and efficiently.