Add oil to skillet, then the hot banana peppers. Cook over medium to med-high heat for 6-7 minutes, stirring often. When you start to get nice brown spots all over the peppers, add the garlic and cook for 1-2 minutes, stirring often, careful not to burn the garlic.
Add the peppers, garlic, and any remaining oil from the pan to a blender along with the white vinegar, water, and sea salt. Blend until smooth. This is a thick hot sauce, so it won't end up thin and liquidy.
Place funnel in hot sauce bottle and pour hot sauce into it. Because it's thick, I like to poke a chopstick or drink stirrer through the funnel hole to help move the hot sauce down. Once cooled, keep hot sauce in the refrigerator and use within 1-2 weeks.