Turn on a multi-functional pressure cooker (such as Instant Pot®) and select Saute function. Add bacon and cook, 4 to 6 minutes, turning once. 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. Mash beans with a potato masher until they reach desired consistency.
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