In a large skillet, cook bacon over medium until browned, 3 to 4 minutes per side. With tongs, transfer to a paper-towel-lined plate (reserve skillet with pan drippings).
Add onion to skillet; season with salt and pepper. Cook, stirring occasionally, until onion starts to brown,3 to 5 minutes. Add green beans and 1/4 cup water; cook, tossing occasionally, until beans are bright green and tender, about 10 minutes.
Crumble bacon into skillet; add vinegar and sugar. Cook until a syrupy sauce forms, 2 minutes, tossing to coat. Serve immediately.
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