Resistance to the β-lactam/β-lactamase inhibitor (BL/BLI) combination antibiotic piperacillin/tazobactam (TZP) predominantly occurs via β-lactamase enzymes also leading to resistance to third-generation cephalosporins (3GCs). However, if β-lactamases inactive against 3GCs and inhibited by tazobactam are expressed at high levels leading to enzyme hyperproduction, the surplus enzyme escapes inhibition by tazobactam and inactivates the antibiotic piperacillin. Understanding this mechanism is clinically relevant as enzyme hyperproduction can emerge upon antibiotic administration, resulting in treatment failure despite initial resistance profiles supporting TZP use. We report the identification of an Escherichia coli isolate that developed resistance to TZP during patient treatment. Our whole genome sequencing (WGS) analyses show that TZP resistance evolved via IS26-mediated duplication of a blaTEM-1 containing gene cassette on a plasmid, resulting in hyperproduction of TEM-1 β-lactamase. We demonstrate that ten copies of blaTEM-1 induce resistance greater than 32-times the MIC and exposure to TZP further increases amplification of blaTEM-1. Furthermore, in the absence of TZP, gene copy number of IS26 and blaTEM-1 remains stable over five days, despite a 48,205 bp genome size increase compared to the pre-amplification isolate. We additionally detect phenotypic changes that might indicate host adaptation potentially linked to the additional genes in the amplified cassette. Our analysis advances the understanding of infections caused by isolates evolving β-lactamase hyperproduction, which represent a complex problem in both detection and treatment. As 40% of antibiotics active against WHO priority pathogens in the pre-clinical pipeline are BL/BLI combinations further investigations are of urgent concern.