I see the same thing, but I think it's supposed to be a rightward arrow, as in a function from positive numbers to negative numbers. At least, that's how it usually appears in the Racket documentation.
It does appear to be some encoding issue relating to the Unicode "→" (U+2192). Encoded with UTF-8, this is represented by the three bytes 0xE2 0x86 0x92. In the TeX EC encoding, these correspond to "âĘŠ".
I've submitted a replacement to arxiv that fixes the encoding issues (arxiv unfortunately does not support xelatex, which I use extensively). That will appear Tue 0:00 GMT.
Other people have taken that approach, for example the HALO project in Haskell. But the imprecision of the defunctionalizaton often makes it hard to prove the properties you want, especially without static types.