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Gather the ingredients.
Turn on a multi-functional pressure cooker (such as Instant Pot) and select Sauté function. Add bacon and cook, turning once, 4 to 6 minutes.
Add chicken broth, pinto beans, water, onions, chile peppers, garlic powder, salt, chili powder, cumin, and paprika. Close and lock the lid.
Select high pressure according to manufacturer's instructions; set timer for 45 minutes. Allow 10 to 15 minutes for pressure to build.
Release pressure using the natural-release method according to manufacturer's instructions, 10 to 40 minutes. Unlock and remove the lid.
Remove bacon and chile peppers; chop to desired consistency and return to the pot. Mash beans with a potato masher until they reach desired consistency.