To make the meatballs: In a large bowl, mix together all the ingredients, except the canola oil. Shape heaping teaspoons of the mixture into 1-inch balls. In a Dutch oven, heat a tablespoon of oil over medium-high heat. Working in batches, wiping pan in between, saute the meatballs, turning frequently for even browning, until cooked through, about 4 to 5 minutes. Place on a paper towel-lined plate.
To make the sauce: Heat oil in the same Dutch oven over medium-high heat. Add the onions and saute until golden brown, about 8 minutes. Add the crushed red pepper and cook 1 minute. Stir in the remaining ingredients and reduce heat to low.
Add the browned meatballs to the Dutch oven and toss gently to coat with sauce.
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