The expulsion of Jews (and Muslims) from Spain was based on a desire to purge non-Catholics, for political and economic reasons. They would not have cared if the Yidden there were non-observant or Hasidim. Note that unlike the Germans, they were not racially motivated and would allow anyone to stay if they converted and did a good job of seeming to be Catholic. It should be noted that most Spaniards today regard the expulsion as one of the dumbest things they ever did. — One can argue that the mass persecution of Jews in the western countries in the 19th century was related to secular Jews integrating themselves into Christian societies and playing an increasing role in cultural, social and economic areas (the backlash was mild in the English speaking countries, severe in the German speaking ones), but there was no equivalent in Spain (at least prior to the expulsion, there was some “racial” persecution of those Jews who chose to go OTD rather than leave Spain in 1492).
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