In a large saucepan or soup pot, simmer the crushed tomatoes on low until slightly thickened, about 30 to 45 minutes. Remove from the heat and stir in the butter, hot sauce and sugar.
In a blender, puree the tomato mixture in batches, then return to the saucepan and thin with water to desired consistency.
Rewarm the soup, season with salt, pepper and hot sauce and serve.