Select saute function on Instant Pot and let it heat until it says "HOT".
Add bacon to pot and cook until crisp, about 5 minutes. Remove bacon to a plate lined with paper towels.
Cook the onion in the bacon drippings until tender, about 3 minutes. Scrape up the brown bits on the bottom of the pot as the onions cook.
Add soaked beans and all other ingredients, except bacon. Select high pressure and cook for 30 minutes. When it has finished cooking, let pressure release naturally for 15 minutes, then do a quick pressure release.
Make sure beans are completely cooked, then add bacon and serve.