Soak the Italian bread in the ¼ cup of water for 3 minutes. Squeeze water out and break into small pieces.
Beat the egg in a large bowl. Add in the bread crumbs, soaked Italian bread pieces, chopped onion, parmesan cheese, 2 tbsp. water, 2 teaspoons olive oil, parsley, garlic, black pepper, red pepper, and Italian seasoning. Stir well.
Mix in the ground beef and ground pork. You can use your electric mixer for this or a hand potato masher also works well.
Shape meat into balls. I made mine about the size of a golf ball.
Add 1 tablespoon olive oil to your instant pot. Set to saute and brown the meatballs on each side. Remove from pot and wipe grease out of the bottom of the pot.
Pour ½ jar of spaghetti sauce into the pot. Lay meatballs on top of sauce.
Break the spaghetti noodles in half. Lay them on top of the meatballs in different directions. This helps to prevent sticking.
Pour remaining ½ jar of sauce over top of noodles.
Fill sauce jar with water. Shake to mix in any sauce that is left in jar. Add this water to the top of noodles.
Seal Instant Pot according to pot directions.
Cook at high pressure for 7 minutes.
Do a manual fast release. Remove lid, stir carefully to avoid breaking up meatballs and ready to serve.