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Preheat the oven to 425°F. Set out a large rimmed baking sheet. Remove the stems from the chili peppers and shake out all the seeds. Peel the garlic and onions. Place the garlic cloves on the baking sheet and slice the onion into large wedges. Lay the onion wedges on the baking sheet. Drizzle the top of the chilies, onions, and garlic with oil. Salt generously.
Roast the chilies and aromatics in the oven for 12-15 minutes until soft and slightly charred around the edges.
Allow the roasted vegetables to cool. Then scoop the roasted ingredients and the oil into a blender jar. Add the basil, balsamic vinegar, sugar, smoked paprika, apple cider vinegar, and dried oregano. Purée until very smooth.
Check the consistency of the hot sauce. It should be thick and equal to about 1 ½ cups of sauce. At this point you can jar the sauce, or add water to thin out the sauce. If you like a thinner hot sauce consider adding 3 to 10 tablespoons of water. Purée again.