In a medium sized bowl, mix together all meatball ingredients until well combined. Use your hands to combine the ingredients.
Shape meatballs in 1½ inch diameter meatballs.
Place meatballs in the air fryer and cook for 6-8 minutes.
Sauce
Heat olive oil in a small saucepan over medium heat.
Add onions and garlic to the saucepan. Saute for 1-2 minutes until onions start to become translucent.
Add diced tomatoes, oregano, bay leaf, cayenne, salt, and pepper to the saucepan. Bring to a boil, then lower temp and let simmer for 15 - 20 minutes until your sauce begins to thicken.
Stir parsley into your sauce.
Toss meatballs in the sauce until they are slightly coated in the sauce, then serve!