Turn on a multi-functional pressure cooker (such as Instant Pot(R)) and select Saute function; heat until indicator reads 'Hot.' Add bison, onion, red bell pepper, and olive oil. Saute until bison is browned and crumbly, 5 to 7 minutes. Add mushrooms; saute until slightly softened, 1 to 2 minutes.
Stir basil, garlic, oregano, and bay leaf into the bison mixture. Add tomatoes, water, wine, and tomato paste. Turn cooker off. Add pasta; stir until coated. Mix in salt, onion powder, and garlic powder.
Set cooker to Manual. Close and lock the lid. Select high pressure according to manufacturer's instructions; set timer for 5 minutes. Allow 10 to 15 minutes for pressure to build.
Release pressure carefully using the quick-release method according to manufacturer's instructions, about 5 minutes. Unlock and remove lid. Stir well.
You can replace the oregano with Italian herb mix.
Any variety of pasta works in this recipe. I used Italian trottole pasta, which is a bit thicker and takes a little longer to cook normally. Reduce cooking time to 4 minutes for more delicate pasta like farfalle. If it is too al dente for your taste, place the lid on and let it stand for another minute or two until it reaches your desired firmness.