Liz Buchanan BVSc MRCVS
Keymaster
Hello! I'm afraid that this doesn't sound like a cyst. Cysts are usually closed-off cavities that produce a sterile liquid on the inside. This liquid sounds somewhat unpleasant and has some of the hall-marks of necrosis or infection. Your description made me wonder about neoplasia (cancer), abscessation or infectious diseases, some as venereal warts.
When I first graduated there were some old vets who used still used Hydrogen Peroxide for a lot of minor ailments, but even back then it was contraindicated on the inside of the flesh, including raw wounds. It is a known carcinogen and corrosive, which means that it can irritate and burn sensitive skin. Especially given that the structure sounds to have ruptured and that the tissue beneath is exposed, there may now be much better treatments to choose from.
Here in the UK, vets would want to consider from several options, potentially including biopsy, surgical removal or medical treatment if applicable. The treatment depends on the likely identity of the lesion, so we would strongly advise that they examine your dog.
Please do let us know how you get on.
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