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Keep in mind that this is not a common thing that happened. A few buck's for bearings and seals is worth evry penny. It is not easy to clean this out without splitting the case. You can't know for sure you got all out. I see no reason to change cylinder if it is ok, but take a good look at...

If you are going to fix it up, be smart and do it all! Crank bearings, seal's, cylinder/piston, carb rebuild(not just the membranes) etc. There is a reason for this ugly mess, and it could be a bunch of factors combined. The option to just replace the piston and hope it will go ok for a while...