Flash-Heating of Circumstellar Clouds by Gamma Ray Bursts
  The blast-wave model for gamma-ray bursts (GRBs) has been called into question by observations of spectra from GRBs that are harder than can be produced through optically thin synchrotron emission. If GRBs originate from the collapse of massive stars, then circumstellar clouds near burst sources will be illuminated by intense gamma radiation, and the electrons in these clouds will be rapidly scattered to energies as large as several hundred keV. Low-energy photons that subsequently pass through the hot plasma will be scattered to higher energies, hardening the intrisic spectrum. This effect resolves the "line-of-death" objection to the synchrotron shock model. Illuminated clouds near GRBs will form relativistic plasmas containing large numbers of electron-positron pairs that can be detected within ~ 1-2 days of the explosion before expanding and dissipating. Localized regions of pair annihilation radiation in the Galaxy would reveal past GRB explosions. 
Charles D. Dermer (NRL) and Markus Boettcher (Rice U.)