I don't know what's going on am I being scammed?

Speaking as an IT Security professional who sees literally hundreds of these types of scams come over email and other digital mediums regularly in literally thousands of different forms, I can say this safely (as it has nothing to do with the 'sugar baby' / 'sugar daddy' set of things in general, and more 'common sense' knowledge about the Internet at large):

This is almost 100% a scam, and in many cases most of the 'sugar daddy' type scenarios run into here online are scams or untrustworthy. NEVER trust someone randomly reaching out to you randomly offering you money but asking you to provide an up-front 'verification fee', they're going to take your $150 and then run. This is a common tactic of scammers and such who are preying on people who 'want money' (sugar babies, etc.) to just steal your money. This is a common tactic on many different types of scams, such as the historic Nigerian Prince scams, the ongoing "Hey, I have millions of dollars for you but need bank details" scams, and a nearly limitless number of similar scam trends actively going on in the real world today.

The common attack tactics for this are email driven scams but social media outreach via messages and such are becoming larger and larger mediums for this type of behavior and scams, so you should be ultra concerned when you receive such messages out of the blue. You should immediately report this user to Instagram for fraudulent/scammy behavior and attempting to scam you, and you should remove the cash app and not send a single penny to this person.