In the incident that took place in Pangaltı, Istanbul, in 1895, known in history as the Pangaltı Incident, one person was killed and twelve people were injured. This article examines why the event occurred, who the perpetrator was, and its consequences. By using Ottoman and American archival documents together with newspapers of the period, the differences between the literature and the facts have been revealed. In particular, the allegations that Fehim Pasha was involved in the incident were compared with the narratives of journalists and writers of the period, and the event was analysed through different sources. Safranbolulu Mustafa was captured as the perpetrator; during the court process, despite the lack of evidence, he was sentenced to death, and his sentence was later commuted to penal servitude. The Pangaltı Incident is a multidimensional event reflecting the media, legal, and political dynamics of the period. With elements such as an unproven crime, manipulative press, fake news, censorship, press control, trials initiated by instruction, and the association of Fehim Pasha with the event, the incident can be evaluated as a unique narrative of Ottoman history.