Add 1 tablespoon oil to a 6-quart Instant Pot set to the sauté function. Add beef and sprinkle on salt and black pepper. Sear on all sides for a total of 4-5 minutes. You may have to do this in two batches if all of the meat does not fit in a single layer.
Remove the beef from the pot and add an additional tablespoon of oil and the diced onion. Saute for 2-3 minutes, or until tender. Pour in the broth to deglaze the pot and scrape the bottom of it to release any stuck bits and pieces.
Add all chipotle sauce ingredients to a high-speed blender and blend for 30 seconds, or until smooth.
Add the blended chipotle sauce and can of diced chiles to the pot. Stir to combine and then add beef back in, making sure to submerge the it in the sauce. Place the bay leaves on top of the meat.
Close the pot with the lid, ensuring the pressure release valve is set to sealed, and set to a manual pressure cook function on high pressure and cook for 60 minutes. Quick release the pressure as soon as the timer goes off.
Remove the bay leaves and shred the beef using two forks. Stir it to completely coat it in the sauce.
If desired, set the Instant Pot to the saute function and cook for 4-5 minutes to cook off some of the extra liquid.
Serve barbacoa immediately in a toasted tortilla or over rice with sliced red onion, avocado, cilantro, and queso fresco. Enjoy!