Chand bibi died while she was defending Ahmednagar. Someone spread the rumor that she wanted to surrender. Soon angry group of her own troop killed her.
By 1591, the Mughal emperor Akbar had conquered most of north India and wanted to all three Deccan sultanates(Ahmednagar, Bijapur & Golconda) to acknowledge his supremacy. All three Deccan sultanates refused to acknowledge his supremacy.
In 1595, Ibrahim Nizam Shah, the ruler of Ahmednagar Sultanate fought a war against sultan of Bijapur. Unfortunately he was killed in battle of Shahdurg.
After his death, powerful nobles proclaimed his son infant bahadur shah as King under the guidance of Chand Bibi. Thus Chand bibi became defacto ruler of Ahmednagar.
Soon Mughal Emperor Akbar saw opportunity and he attacked Ahmednagar.
Chand Bibi successfully defended Ahmednagar against the Mughal forces of Emperor Akbar and forced them to withdraw from Ahmednagar.
However over next few year, several generals and factions unsuccessfully attempted to over throw Chand bibi. This led to period of great internal instability in the Ahmednagar empire.
Sensing opportunity Akbar launched a new campaign against Ahmednagar in 1599.
Within few months large Mughal Army surrounded Ahmednagar fort.
As Chand bibi was facing a large well-equip Mughal army, she became unsure about her ability to fight the Mughals and opted to negotiate.
Powerful noble Hamid Khan exaggerated news of her negotiation and spread the false news that Chand Bibi was planning to surrender Ahmednagar fort to Mughals.
Soon rumor spread that Chand bibi was not preparing for battle but was about to surrender. The Ahmednagar army and the nobles conspired to overthrow her.
Soon a group of angry soldier surrounded and killed Chand Bibi.
It took only four months and four days after the death of Chand Bibi that Mughal army captured Ahmednagar Fort.