Preheat oven to 400°F. In a large mixing bowl, combine chicken, bread crumbs, onion, garlic powder, onion powder, egg, and 2 tablespoons of hot sauce.
Form the mixture into two-inch meatballs. Place them on a baking sheet lined with parchment paper. Drizzle the oil over the top. Bake them for 18-20 minutes.
While the meatballs are baking, prepare the sauce by combining the remainder of the hot sauce and butter in a microwave-safe dish. Cover the bowl with a paper towel or plastic wrap, and microwave the sauce for 30 seconds. Stir or whisk until the butter has completely melted.
Remove the meatballs from the oven, place them in a mixing bowl, and toss them with the sauce. Serve with blue cheese dip or Ranch dressing, celery, and carrots.