Preheat oven to 350°. Line the bottoms of 2 greased 8-in. round baking pans with parchment; grease parchment.
In a large bowl, combine cake mix, gelatin, sugar and flour. Add water, oil and eggs; beat on low speed 30 seconds. Beat on medium 2 minutes. Fold in chopped strawberries. Transfer to prepared pans.
Bake until a toothpick inserted in center comes out clean, 25-30 minutes. Cool in pans 10 minutes before removing to wire racks; remove paper. Cool completely.
For frosting, in a small bowl, beat butter until creamy. Beat in crushed strawberries. Gradually beat in enough confectioners’ sugar to reach desired consistency. Spread frosting between layers and over top and sides of cake.