Bring a cast iron skillet to medium high heat. Add the olive oil and char the serrano peppers, garlic, and onion for about 5-10 minutes, turning the ingredients occasionally to blacken evenly.
Once charred, transfer the peppers, garlic, and onion to a saucepan. Add 1 cup of water and bring to a boil. Reduce the heat and simmer lightly for 10-15 minutes, until peppers and onions are softened.
Add the chopped ginger, tomatillo, and sugar to the saucepan. Continue to simmer for an additional 10-15 minutes until the ginger is tender. Most of the liquid should be evaporated.
Remove the saucepan from heat and let the mixture cool slightly. Then, transfer the mixture to a high-powered blender. Add 1 cup of white vinegar, salt, lime juice, and smoked paprika.
Blend the mixture until smooth. If the sauce is too thick, you can add a bit more white vinegar to reach your desired consistency.
Taste the hot sauce and adjust the seasoning as needed, adding more salt, sugar, or lime juice to balance the flavors.
Once satisfied with the taste and consistency, strain the hot sauce through a fine mesh sieve to remove any solids. This step is optional, but I recommend it for a more splashy sauce.
Transfer the strained hot sauce into sterilized bottles or jars. Allow it to cool completely before sealing tightly.
Store the hot sauce in the refrigerator for up to 6 months.