Magnetotactic bacteria (MTB) are endowed with an exquisite orientation mechanism allowing them to swim along the geomagnetic field lines [1][2][3]. This mechanism consists of a chain of biosynthesized magnetic nano-crystals [1,4,5]. Although the physics behind the minimum size of this biological compass is well understood [6], it is yet unclear what sets its maximum size [6][7][8]. Here, by using a macroscopic experiment inspired in these microorganisms, we show that larger magnetic moments will drive the collective behavior of MTB into a phase where bacteria are unable to swim freely, in detriment of their evolutive fitness [3,9]. Simple macroscopic experiments, numerical simulations, and analytic estimates are used to explain the upper limit for the size of the chain of nano-crystals in MTB. Our macroscopic bio-inspired experiment, and physical model provide new opportunities to explore and understand the phases of magnetic active matter at all scales.