Preheat the oven to 425°F (220°C).
Wash the baby potatoes and place them in a large pot. Cover with water and add a generous pinch of salt. Bring to a boil and cook for about 15-20 minutes, or until the potatoes are fork-tender.
Drain the potatoes and let them cool slightly.
On a baking sheet lined with parchment paper, arrange the potatoes in a single layer. Using the bottom of a glass or a potato masher, gently smash each potato until flattened but still intact.
Drizzle the olive oil over the smashed potatoes and sprinkle with garlic powder, onion powder, smoked paprika, salt, and pepper. Toss to coat evenly.
Bake in the preheated oven for 20-25 minutes, or until the potatoes are golden brown and crispy.
While the potatoes are baking, prepare the dressing by whisking together the mayonnaise, Dijon mustard, apple cider vinegar, and a pinch of salt and pepper in a bowl.
Once the potatoes are done, remove them from the oven and let them cool for a few minutes.
In a large bowl, combine the crispy potatoes, chopped chives, crumbled bacon (if using), and diced red onion. Drizzle the dressing over the salad and toss gently to combine.
Serve warm or at room temperature.