Place the stainless steel inner pot inside the Instant Pot®. Press Saute and set time to 5 Minutes. Add the water, white wine, salt, pepper, spices, and bay leaves.
Once the water is hot, dunk the octopus in for 5 Seconds using kitchen tongs. Dunk the octopus in again and leave in the Instant Pot®.
Close and lock the Instant Pot® lid. Press Pressure Cook and set pressure level to High for 45 Minutes.
Once the time is up, press Cancel and turn the steam release handle to Venting.
Remove the lid from the Instant Pot® and use kitchen tongs to transfer the octopus to a bowl.
Once the octopus cools, cut into chunks.
In a bowl, combine the octopus chunks, lemon juice, salt, pepper, chopped cilantro, bell pepper, and red onion. Stir using a spatula and serve.