I must of pressed a shortcut of some sorts and now whenever I add text it says its same size but anything below size 1000pt is absolutely tiny?
How do I undo this?

Rofl. You probably are zoomed out really far and you don't know it.

Take the zoom tool, right click, and click on actual pixels. See if that works.

I would assume that you made a new photoshop file, and, instead of making it pixels... probably made it inches. Check you zoom, if you're zoomed way out you probably made it in inches.