Prepare the sauce. In a medium saucepan, cook the bacon over medium heat until crisp. Remove bacon with a slotted spoon and set aside. Remove the fat rendered and discard, but leave the dripping of bacon at the bottom of the saucepan. Add the rest of the ingredients to the saucepan and bring to a boil over medium heat, stirring occasionally. Reduce heat and simmer for about 15 minutes. Remove from heat and set aside.
Prepare the chicken wings. Pat dry the wings and place in a large bowl. Add olive oil, salt, pepper, and garlic powder. Toss until the wings are well coated.
Place wings on the air fryer basket and air fry at 425°F for 18-20 minutes until crispy. Depending on the capacity of your air fryer, consider working in batches. Wings should be evenly spaced to allow for crispiness.
Add fried wings to a large bowl. Heat up the sauce and add to the wings. Toss until well coated. Sprinkle with crispy bacon bits. Serve immediately.
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