Arrange the frozen meatballs in a single layer on the bottom of the Instant Pot.
Break the spaghetti in half and arrange the strands over the meatballs in a crisscross pattern so they fit evenly.
Drizzle the tablespoon of olive oil over the spaghetti to help prevent sticking.
Pour the pasta sauce over the spaghetti, then add 3 cups water. Press down gently so the pasta is submerged and coated with sauce but do not stir.
Secure the lid and set the Instant Pot to High pressure for 10 minutes.
When the cook time finishes, perform a quick release of the pressure and carefully open the lid.
Stir the pasta and meatballs together in the sauce until evenly combined.
Top with Parmesan cheese and basil, then serve immediately.