In the Instant Pot insert, combine the onion, tomatoes, tomato paste, sugar, garlic powder, and salt and pepper. Stir in 1 cup of water then add the pasta on top, without stirring in.
Make the meatballs by combining the beef, breadcrumbs, egg, salt, pepper, and garlic powder in a bowl. Shape the meat into balls and place directly into the pot on top without stirring in.
Cover and cook on high pressure for five minutes. When done, quick release the pressure and carefully open the Instant Pot.
Stir and turn on sauté mode to reduce the sauce if needed. Taste and season. Enjoy!