Add the olive oil to your Instant Pot and press the saute button. Allow the oil to heat up for about 30 seconds, and then add your diced onions. Saute for about 2-3 minutes or until the onions are softened.
Fold in the crushed tomatoes, diced tomatoes, granulated sugar, garlic powder, salt, black pepper, basil, and broth. Use your wooden spoon to mix well; this will allow you to get any of the onions that are sticking on the bottom to be removed. Otherwise, you may get a BURN notice.
Add the Instant Pot Lid, and set manual high pressure for 5 minutes. When cooking is done, allow the Instant Pot to release naturally.
When the pressure is all released, remove the lid and add the butter, heavy cream, and hot sauce.
Use a blender or immersion blender to smooth the soup. You can also use a potato masher if you don't have either.
Serve with Croutons, Shaved Parmesan Chees, or Fresh Herbs.