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The treatment for a traumatic bone cyst primarily involves surgical exploration with curettage. Traumatic bone cysts, often referred to as simple bone cysts, are typically asymptomatic and may be discovered incidentally via radiographs. However, when they are symptomatic or large enough to create structural concerns, surgical intervention becomes necessary.

Curettage involves the removal of the cyst lining and any associated debris to promote healing and stimulate the regeneration of new bone. This procedure not only addresses the lesion but also prevents potential complications such as fracture or further expansion of the cyst.

It's essential to differentiate this approach from other options. Observation can be considered for small, asymptomatic cysts but is not adequate for those that require intervention. Medication management is generally not applicable, as these cysts do not respond to pharmaceuticals and are structural issues. Radiation therapy is inappropriate, as it poses unnecessary risks, particularly in a young population where bone health is crucial.

Thus, surgical exploration with curettage is the correct treatment approach for traumatic bone cysts, effectively addressing the problem and allowing for proper healing.