According to this article just released at AlphaGalileo.org, a form of gastric bypass surgery seems to cure diabetes in 98 percent of diabetic patients receiving it.
Duodenal exclusion surgery removes an area of the gastrointestinal tract that apparently triggers insulin resistance. The normalizing effect happens too soon to be attributed to weight loss.
It's too soon to say what the ramifications of the discovery will be, but an international team of doctors has performed the surgery on seven type-2 diabetics and are monitoring the results.
The website is new to me, and appears to be reputable. (I stumbled onto it while trying to find out if there is anything I can have for lunch. I'm starving, but my sugar levels are too high to eat. It seems Metformin ain't cuttin' it anymore.)