In a medium-size saucepan, heat the olive oil over medium-high heat. Add the onions, bay leaves, 1/2 teaspoon of the salt, the cayenne, and pepper flakes. Cook, stirring, for 3 minutes. Add the tomatoes, tomato paste, garlic, wine, 1 cup of the water, the basil, parsley, and sugar. Stir to mix. Bring to a boil, reduce the heat to medium, and simmer until thick, for 45 minutes. Add the calamari and simmer for 12 minutes.
Preheat the oven to 350°F.
In a large saucepan over high heat, combine the remaining 6 cups water, 1/2 teaspoon of the salt, and the vegetable oil. Bring to a boil, then add the macaroni and cook, stirring occasionally, until tender, about 8 minutes. Drain and rinse under cool water. Pour into a 2-quart baking dish. Pour the calamari sauce over the macaroni and stir to mix. Arrange the olives over the top of the macaroni.
In a small mixing bowl, combine the bread crumbs with the remaining 1/2 teaspoon salt, the black pepper, and extra-virgin olive oil. Mix well and sprinkle over the olives.
Bake until the bread crumbs are golden brown, about 30 minutes. Serve hot.
Yield: 8 servings